Coinbase Surpasses $420 Billion AUM, Overtakes 21st Largest US Bank

Coinbase, the world's third-largest centralized cryptocurrency exchange (CEX) by trading volume, has reached a significant milestone. Its assets under management (AUM) have surpassed $420 billion, making the exchange worth more than the 21st largest bank in the United States. This achievement underscores the continued growth and increasing influence of the crypto industry.

Coinbase's AUM, which totals over $420 billion, would place the exchange as the 21st largest bank in the US by total assets, according to Brian Armstrong, the co-founder and chief executive officer of Coinbase. Armstrong highlighted this comparison in a Feb. 7 Xpost, noting that if Coinbase were considered a brokerage, it would rank as the 8th largest by AUM.

Coinbase's $420 billion AUM is more than three times the $112.9 billion worth of assets managed by the New York Community Bancorp (NYCB), which is the 21st largest bank in the US. The NYCB recently posted a $260 million quarterly loss after acquiring the collapsed, crypto-friendly Signature Bank in 2023. In contrast, Coinbase reported a $273 million net profit for the same quarter, marking its first positive income quarter since the fourth quarter of 2021.

Looking ahead, Coinbase's CEO, Brian Armstrong, envisions a future where cryptocurrency platforms consolidate various financial services into a single, all-in-one neobank. He believes that crypto will unite financial services under a "single primary financial account," making financial transactions more efficient and accessible. To achieve this, the industry must address and remove the most pressing friction points, such as setting up wallets, paying transaction fees, and buying blockchain-native tokens to transact on a network.