Coinbase CEO, Brian Armstrong has announced that the company might be adding banking features to its platform. This move is seen as an attempt to increase user convenience and accessibility while streamlining services, by merging digital assets with conventional banking. CoinDesk reports that, the crypto exchange is planning to offer a wider range of financial services such as issuing debit cards, mortgages, or loans. This will enable Coinbase to position itself as a one-stop-shop for all financial needs. However, the decision is still in the preliminary stages and the company has not provided any official statement regarding the development.
The crypto community is reacting to the collapse of three major crypto-friendly banks in the US. Silicon Valley Bank is one of the banks to shut down after failing to meet customer withdrawal requests. Coinbase CEO Brian Armstrong tweeted that his exchange had previously considered adding banking features, and non-fractional reserve banking would be preferable given recent issues. USDC has recovered after an announcement from Circle CEO Jeremy Allaire that the stablecoin’s reserves were safe and Circle had a new banking partner. Crypto-friendly banks Silvergate and Signature Bank also faced financial difficulty.