Coinbase chief executive Brian Armstrong has unveiled his company’s boldest ambition yet: to turn Coinbase into a crypto-powered “super app” capable of replacing traditional banks.
In an interview with Fox Business, Armstrong explained that the exchange is preparing to roll out an all-in-one suite of financial services. These would include everything from payments and credit cards to loyalty rewards — all built on blockchain rails rather than legacy banking infrastructure.
Integrating DeFi to Enhance USDC Yields
As part of this strategy, Coinbase has introduced decentralized lending protocol Morpho into its platform. The integration enables users to lend USDC directly inside the Coinbase app, without relying on external DeFi platforms, and potentially earn returns of up to 10.8%.
This move comes at a time when yield-generating stablecoins are under scrutiny. The GENIUS Act banned such products, while banking industry groups like the Bank Policy Institute have urged regulators to clamp down on what they consider loopholes created by DeFi protocols.
Coinbase pushed back on those arguments, insisting that stablecoins are not a threat to lending systems, but instead represent a modernized way to generate revenue in financial services.
Pushing for a Super App Model
“Yes, our aim is to become a financial super app,” Armstrong said. “We want to serve as people’s main financial account, and crypto should have the opportunity to take on that role.”
Armstrong criticized legacy banks as outdated and inefficient, highlighting card fees as one of the most obvious examples. “It doesn’t make sense that every card swipe costs two to three percent,” he noted. “At the end of the day, it’s just data moving across the internet. The cost should be close to zero.”
Bitcoin Rewards and the Road Ahead
Looking ahead, Armstrong revealed plans to expand Coinbase’s offerings with new incentives, including a credit card that provides 4% Bitcoin cashback. “Ultimately, we want to serve as a full replacement for banks,” he added.
This vision is gaining traction as U.S. regulators provide more clarity for the crypto sector. Armstrong pointed to legislative progress like the GENIUS Act and ongoing market structure bills in the Senate, calling it a sign that regulatory momentum is firmly underway.
While Coinbase continues to work with major institutions such as JPMorgan and PNC, Armstrong said the bigger challenge is ensuring fairness. “Sometimes banks operate with one set of rules while we’re forced to play by another,” he remarked. “We’d prefer a truly level playing field where every company is treated the same.”
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