U.S. Banks Quietly Advance Stablecoin and Crypto Pilot Programs, Coinbase CEO Says

Coinbase CEO Brian Armstrong said major U.S. banks are now running pilot programs involving stablecoins, crypto custody and digital-asset trading, marking one of the clearest signs yet that traditional institutions are preparing for on-chain finance. Armstrong shared the update during a joint appearance with BlackRock CEO Larry Fink at the New York Times DealBook Summit.

Although he did not disclose which banks are participating, Armstrong said interest among top-tier institutions has accelerated noticeably this year. "The best banks are leaning into this as an opportunity," he said. "The ones who are fighting it are going to get left behind."

His remarks reflect a broader 2025 trend: while Washington remains gridlocked on digital-asset legislation, financial institutions have continued internal tokenization pilots, stablecoin-based settlement tests and early custody integrations out of public view.

Stablecoins backed by cash and short-dated Treasuries have emerged as the preferred entry point for banks exploring on-chain settlement. They offer dollar exposure with minimal volatility, fit neatly into existing compliance structures, and can be inserted into tokenization projects already running at clearinghouses, banks and payments firms.

For banks, the draw includes faster settlement, reduced reconciliation workloads and the ability to service digital-first corporate clients without building entirely new consumer products. Armstrong indicated that banks are increasingly motivated by demand from corporate treasurers seeking stablecoin rails for global liquidity management, cross-border transfers and treasury automation - areas where crypto-native firms have become early leaders.

BlackRock's Larry Fink reiterated his evolving stance on bitcoin, describing the asset not as a speculative instrument but as a security hedge. "You own bitcoin because you're frightened of your physical security. You own it because you're frightened of your financial security," he said.

Fink noted that geopolitical instability, elevated sovereign debt levels and shifting macro expectations have pushed more traditional investors toward bitcoin. BlackRock's bitcoin ETF and its tokenization initiatives reflect this broader institutional positioning.

The joint appearance underscored how digital assets - once marginal in conventional finance - are now part of mainstream strategic planning.

Armstrong also used the event to renew pressure on the U.S. Senate to vote on the CLARITY Act, a bill designed to define digital-asset categories, market structure rules and the regulatory perimeter for token issuers and trading platforms.

He argued that predictable rules are necessary for companies to innovate without second-guessing enforcement outcomes. Multiple House-approved digital-asset bills remain stalled in the Senate, despite growing bipartisan interest in stablecoin rules and token-market structure reforms.

If large U.S. banks transition from pilots to live use, stablecoin-based settlement, crypto custody and tokenized dollar infrastructure could become standard components of bank operations - similar to developments already underway in Europe and parts of Asia.

Armstrong warned that without legislative clarity, U.S. institutions risk lagging behind other financial hubs. Yet demand from asset managers and corporates continues rising regardless of regulatory uncertainty.

The DealBook conversation captured a notable shift: a leading crypto exchange and the world's largest asset manager now publicly align on stablecoins, tokenization and bitcoin hedging - topics largely absent from traditional finance only a few years ago.