Crypto Platforms like Coinbase and Ripple Could Replace Traditional Banks for Gen Z

John Deaton, a prominent crypto lawyer, has made a bold prediction that platforms like Coinbase and Ripple could soon replace traditional banks, particularly among the younger generation. Deaton's assertion is based on the growing trend of Generation Z ditching conventional banking systems in favor of cryptocurrency platforms. This shift is driven by the convenience, accessibility, and innovative financial services offered by these digital platforms.

Deaton's comments highlight a significant trend in the financial landscape, where traditional banking institutions are facing increasing competition from fintech companies and cryptocurrency platforms. The younger generation, in particular, is more inclined to adopt digital solutions that offer seamless and efficient financial services. This trend is not limited to individual transactions but extends to broader financial services, including investments, loans, and remittances.

The rise of platforms like Coinbase and Ripple is indicative of a broader shift towards decentralized finance (DeFi). These platforms offer users the ability to manage their finances without the need for intermediaries, providing greater control and transparency. This decentralized approach aligns with the values of many younger individuals who prioritize autonomy and innovation in their financial dealings.

Ripple, in particular, has been making strides towards mainstream adoption. The company has applied for a national banking license from the U.S. Office of the Comptroller of the Currency (OCC), a move that signifies its ambition to integrate more deeply into the traditional financial system. This application, if successful, could pave the way for Ripple to offer a wider range of financial services, further challenging the dominance of traditional banks.

Coinbase, on the other hand, has established itself as a leading cryptocurrency exchange, providing users with a user-friendly platform to buy, sell, and trade digital assets. The exchange's popularity among younger users is a testament to its success in bridging the gap between traditional finance and the emerging world of cryptocurrency.

The potential for these platforms to replace traditional banks is not just a matter of convenience but also of regulatory compliance. As the regulatory landscape for cryptocurrencies continues to evolve, platforms like Ripple and Coinbase are positioning themselves to comply with existing regulations while advocating for clearer guidelines. This proactive approach could give them a competitive edge over traditional banks, which may struggle to adapt to the rapidly changing financial landscape.

In the same context, John E Deaton believes that companies like Coinbase, Kraken, Ripple, and Robinhood will soon take over the role of traditional banks. He believes people will be able to get car loans, home loans, and even borrow money from each other using these platforms. He sees them becoming full financial centers soon.

Deaton also pointed out the speculation that Ripple might buy Uphold. If that happens, he believes Uphold will also become a major player in this new financial system. Ripple, already a leader in digital payments, could get a major boost with this deal, allowing it to serve more users and offer more financial tools.

According to Deaton, banks that don’t innovate or adopt modern technology will not survive. With the rise of DeFi (Decentralized Finance), people now expect faster services and better access to their money. They also want the chance to earn higher returns and gain more control over their finances. Deaton says this is why many younger people are already turning away from big banks in favor of crypto platforms.

Deaton says Coinbase and Robinhood are no longer just apps for trading. He sees them becoming strong financial companies. More people are using these platforms every day, and he believes they will only get bigger as crypto grows. Recently, Cathie Wood said Bitcoin holders may soon use Coinbase to get mortgages by using their crypto as collateral.

John Deaton agrees with Cathie Wood, calling Coinbase a top stock to own, just like big names such as Goldman Sachs and JPMorgan. Referring to these changes, he said Coinbase isn’t just a crypto app anymore, as it’s becoming a major player in traditional finance. The COIN stock surged, nearly 100% in two months, which shows that more people are buying into this story.

He also says the change is already happening. The world of money is shifting. People who act early could see the biggest rewards.