Coinbase's Financial Services Gambit: A New Era for Fintech Disruption

In 2025, Coinbase is no longer just a crypto exchange—it's a financial infrastructure company with a bold vision to replace traditional banking. CEO Brian Armstrong has declared the company's ambition to become a “super app” offering everything from payments and savings to tokenized equities and DeFi integration, positioning Coinbase as a direct competitor to both legacy banks and traditional fintechs like Square and Robinhood. This strategic pivot is not just speculative hype; it's backed by concrete moves, regulatory tailwinds, and a user base that has grown to 120 million monthly active users, with 8.7 million transacting monthlyCoinbase Statistics 2025: AUM, Users, Revenue, & More^[1].

The Super App Play: Crypto as the Operating System

Coinbase's vision hinges on leveraging blockchain as the “operating system” for financial services. By integrating stablecoins, tokenized assets, and decentralized finance (DeFi) into a single platform, the company aims to replicate the success of apps like WeChat and Alipay but with crypto-native rails. For example, Coinbase's partnership with JPMorganChase now allows users to transfer Chase rewards points to crypto wallets and use Chase credit cards to fund Coinbase accountsJPMorganChase and Coinbase Launch Strategic Partnership to …^[2]. Meanwhile, its collaboration with PNC Bank enables clients to buy, hold, and sell cryptocurrencies via Coinbase's Crypto-as-a-Service (Caas) platformPNC Bank, Coinbase Announce Strategic Partnership to Advance …^[3]. These partnerships are not just incremental—they signal a fundamental shift in how traditional financial institutions view crypto: as infrastructure, not a niche asset class.

The company's Base blockchain, a Layer 2 solution built on Ethereum, is central to this strategy. In 2025 alone, Base processed $6.8 trillion in USDC-related settlement volume, with $3.7 billion in USDC locked on the platformCoinbase Unveils Full-Stack USDC Payment Solution …^[4]. This infrastructure not only supports Coinbase's retail users but also institutional clients seeking faster, cheaper cross-border payments. As stablecoins like USDC gain traction—accounting for 42% of Coinbase's revenue in 2025—the company is effectively monetizing the transition from traditional fiat to on-chain financeCoinbase Accelerates USDC Adoption Across Payments^[5].

Disrupting Fintech's Core: Payments, Lending, and Beyond

Traditional fintechs have carved out niches in specific segments: Square dominates small business payments, Robinhood democratized stock trading, and PayPal streamlined digital wallets. But Coinbase's approach is to eat the entire stack. Its recent $2.9 billion acquisition of Deribit, a leading crypto derivatives exchange, underscores its intent to control both retail and institutional marketsCoinbase Wants Crypto Platforms to Be Financial Infrastructure^[6]. Meanwhile, the company is pushing for SEC approval to offer tokenized equities—digital representations of stocks that enable 24/7 trading, instant settlement, and lower feesCoinbase Pushes for SEC Approval on Tokenized Equities^[7]. If successful, this would directly challenge Robinhood and Schwab, which rely on traditional market hours and intermediaries.

The competitive edge here is clear. Coinbase's institutional trading volume in Q1 2025 hit $256 billion, capturing 82.05% of the total marketCoinbase User Statistics & Revenue in 2025 - Social Capital Markets^[8]. This dominance is amplified by its ability to offer services that traditional fintechs cannot: for instance, Coinbase Wallet's 3.2 million monthly active users are already engaging with DeFi staking and NFTs, creating a flywheel of activity that's hard to replicateCoinbase Wallet Statistics 2025: Users & Growth Insights • CoinLaw^[9]. Unlike Square or Robinhood, which face regulatory scrutiny over their business models, Coinbase is building a regulatory-compliant infrastructure that aligns with emerging frameworks like the GENIUS Act, which provides clarity for stablecoinsPNC Bank Partners with Coinbase to Offer Crypto …^[10].

Regulatory Tailwinds and Market Dynamics

The U.S. regulatory environment is shifting in Coinbase's favor. The Trump administration's pro-crypto stance, coupled with the passage of the GENIUS Act, has created a legal framework that legitimizes stablecoins and tokenized assetsThe Financial Landscape of 2025: The Increasing Convergence of TradFi and DeFi^[11]. This is critical for Coinbase's long-term vision: as Armstrong noted in a recent interview, “Regulatory clarity is the oxygen for innovation in crypto”Coinbase News: Armstrong Outlines Vision for Firm to Evolve Into …^[12]. The company's 50% revenue-sharing agreement with Circle (the issuer of USDC) and its control over 100% of interest generated by USDC products further cement its position in the stablecoin ecosystemNew Framework for Stablecoin Growth - Coinbase^[13].

Meanwhile, global trends are accelerating. The tokenized real-world assets (RWAs) market is projected to hit $16 trillion by 2030, driven by demand for fractional ownership and 24/7 tradingCoinbase Revives Plan to Tokenize Securities: A New Era for Financial Markets^[14]. Coinbase's early bets on this space—such as its plans to tokenize stocks and bonds—position it to capture a significant share of this growth. By contrast, traditional fintechs are constrained by legacy systems and regulatory inertia, making it harder for them to pivot to blockchain-based solutions.

The Road Ahead: Challenges and Opportunities

Despite its momentum, Coinbase faces hurdles. The SEC's stance on tokenized equities remains uncertain, and the company is not currently a registered broker-dealerCoinbase seeks SEC approval for blockchain-based^[15]. However, Armstrong's push for a “no-action letter” from the SEC—similar to those granted to other innovators—could fast-track approvalCoinbase to launch tokenized stocks, predictions markets in U.S.^[16]. Additionally, user education and infrastructure scalability will be critical as the platform expands into lending and savings products.

Yet, the risks are outweighed by the opportunities. With a total addressable market expanding from $394 billion in 2025 to $1.1 trillion by 2032FinTech Market Overview with Size, Share, Value | Growth [2032]^[17], Coinbase's “super app” strategy is poised to redefine financial services. Its ability to combine crypto rails with traditional banking partnerships creates a hybrid model that's both disruptive and defensible.

Conclusion: A New Financial Stack

Coinbase's expansion into financial services is not just about competing with fintechs—it's about building a new financial stack. By integrating crypto, DeFi, and tokenized assets into a single platform, the company is creating a system that's faster, cheaper, and more accessible than traditional banking. While regulatory and technical challenges remain, the alignment of user demand, institutional partnerships, and favorable policy trends suggests that Coinbase is well-positioned to become the dominant financial infrastructure provider of the 21st century. For investors, this represents a high-conviction bet on the future of money.