Coinbase CEO Predicts Surge in Crypto Investments by Traditional Finance Players

According to Coinbase CEO Brian Armstrong, the crypto business is poised for significant expansion, propelled by a surge in investments from traditional finance (TradFi) institutions. Armstrong posted his thoughts on social networking site X after talks at the World Economic Forum in Switzerland, emphasizing how big businesses are becoming more involved in cryptocurrency.

TradFi Giants Dive Deeper into Crypto

Armstrong stated that prominent players, including banks, asset managers, and payment service providers, are accelerating their investments in blockchain technology and digital assets. “Corporate leaders – banks, asset managers, payment services firms, etc – made clear that they are all accelerating investments in crypto. Crypto allocations are going to go up, as are their efforts to build on the blockchain,” Armstrong wrote.

He welcomed the increased competition, noting it will drive innovation and adoption within the crypto space. Armstrong emphasized the need for crypto to modernize the global financial system, adding, “We need crypto to update the entire global financial system to bring these benefits to everyone.”

Armstrong also highlighted the Trump administration’s recent pro-crypto initiatives as a significant factor pushing TradFi institutions to act swiftly. President Donald Trump’s support for creating a national Bitcoin and crypto reserve has sparked widespread discussions among global financial leaders.

“President Trump is forcing everyone to up their game. Basically, every conversation I had with major market leaders was focused on what the Trump Admin planned to do on crypto – eg on a Strategic Bitcoin Reserve – and how they can avoid being left behind,” Armstrong said.

Last week, Trump signed an executive order titled “Strengthening American Leadership in Digital Financial Technology.” The directive aims to evaluate the feasibility of establishing a national Bitcoin and crypto stockpile. It also introduces a working group tasked with developing a unified regulatory framework for cryptocurrencies within six months.

As the momentum builds, Armstrong sees Coinbase as a vital partner for governments exploring blockchain adoption. He noted that Coinbase’s custody and trading services position it well to assist in creating strategic crypto reserves.