Coinbase explores blockchain collaboration with Karnataka government

Coinbase has entered high-level discussions with Priyank Kharge, the IT minister of the Indian state of Karnataka, to explore blockchain infrastructure and developer support opportunities. The closed-door talks, revealed by Coinbase’s chief legal officer Paul Grewal on social media, signal a strategic pivot for the company as it shifts its focus from direct retail engagement to institutional and infrastructure-level collaboration in India [1].

The discussions, which took place on August 6, centered on developer tools, cybersecurity partnerships, and capacity-building initiatives, with the aim of integrating blockchain into Karnataka’s digital public infrastructure. Grewal emphasized the potential for Coinbase to support the state’s leadership in the tech space, describing the future as “onchain” and highlighting the role of the state in shaping it [1]. The focus was not on crypto as a speculative asset but on blockchain’s broader utility in civic and infrastructural innovation [1].

This move aligns with Karnataka’s long-standing reputation as a tech-forward region. In 2017, Kharge himself had spearheaded a seminar on blockchain’s governance potential, framing it as a tool for transparency. The state’s history of early adoption of new technologies makes it an ideal testing ground for Coinbase’s new strategy [1]. The collaboration also follows Coinbase’s exit from India’s retail market in late 2023 amid regulatory challenges, including the failed rollout of its UPI-based crypto offering in 2022 [1].

Rather than focusing on direct consumer services, Coinbase is now positioning itself as a partner in infrastructure development. The company’s approach includes leveraging its institutional expertise in compliance, developer tools, and cybersecurity to support the creation and deployment of onchain applications. Kharge noted in an official statement that Coinbase’s developer platform could streamline how these applications are built and implemented [1].

The strategic timing of these discussions is notable. They coincide with Coinbase’s broader global push to advise governments on crypto policy, a shift the company announced earlier in 2025. Grewal’s appointment to the U.S.-India Business Council further underscores Coinbase’s long-term vision in the region. By engaging with a forward-looking state government, the firm is aiming to influence India’s regulatory landscape from a more institutional and less confrontational angle [1].

If Karnataka adopts any of the proposed initiatives—such as blockchain-based infrastructure projects or state-backed hackathons—it could serve as a model for other states. This approach may gradually ease regulatory resistance at the national level and pave the way for a more favorable environment for blockchain innovation [1].

By moving away from direct retail engagement and focusing instead on developer and institutional collaboration, Coinbase is redefining its role in India’s onchain evolution. The company appears to be taking a measured and behind-the-scenes approach, aiming to build a sustainable foundation that could eventually facilitate broader adoption of blockchain technology within India’s digital ecosystem [1].

Source: [1] Coinbase picks Karnataka to rethink its role in India’s onchain evolution (https://crypto.news/coinbase-picks-karnataka-to-rethink-its-role-in-indias-onchain-evolution/)