Wall Street Banks Quietly Test Stablecoins With Coinbase
- U.S. banks launch stablecoin pilots with Coinbase as they move toward on-chain settlement.
- Corporate demand and competition fuel the fast adoption of tokenized payments and deposits.
- Banks target early for 2026 rules as stablecoin clarity improves through U.S. legislation.
Major U.S. banks have begun pilot programs with Coinbase, testing stablecoins, custody, and trading as part of a broader move toward on-chain settlement. Coinbase CEO Brian Armstrong confirmed this in an appearance at the New York Times DealBook Summit alongside BlackRock CEO Larry Fink.
Banks Move From Experiments to Real Pilots
Armstrong said several large banks now run live tests that integrate stablecoins and direct crypto services into their internal systems. His comments linked these tests to a broader change in traditional finance, where firms move from research phases to operational pilots. This change follows years of uncertainty that slowed earlier efforts.
He said top banks see these tools as part of long-term modernization plans. He added that some institutions still resist change through lobbying teams, though their innovation arms continue building. The tension shows a divide inside major financial firms, which maintain legacy margins while exploring faster digital settlement.
Stablecoins Gain Ground Across Corporate Finance
This internal momentum connects to rising demand from corporate clients who ask for faster settlement modes. Stablecoins backed by cash or short-term Treasuries now serve as the entry point for banks exploring tokenized finance. These tokens offer dollar exposure with immediate transfer capability, making them suitable for treasury operations and cross-border payment tests.
According to Armstrong, the market for stablecoins could reach $1.2 trillion by 2028. Citi, which also explored stablecoin payment work with Coinbase, projects a potential $4 trillion market by 2030 in a stronger scenario. These forecasts align with global experiments such as JPM Coin and Citi’s tokenized deposits, which signal continued interest in on-chain settlement.
Larry Fink supported the view that the U.S. moves slower than countries like India and Brazil. He referenced Brazil’s Pix system, which already supports crypto payment integrations. This comparison framed the U.S. pilots as part of a larger race in financial technology driven by global competition and rising customer expectations.
Market Conditions and Regulatory Pressure
The pilot work occurred during a period of market weakness as many digital assets saw declines in October and November. Armstrong said price swings do not alter the strategic view held by participating banks.
He argued that institutions now treat crypto infrastructure as a working business line rather than a speculative side project. Meanwhile, Armstrong urged lawmakers to advance the CLARITY Act, which aims to define market structure, token issuers, and trading responsibilities.
He linked the need for predictable rules to the operational risks that banks face when they integrate digital assets. The House moved earlier bills, but the Senate has not yet scheduled a vote. Larry Fink added a broader context around Bitcoin during the summit.
He described Bitcoin as an asset held during periods of physical or financial uncertainty. He said BlackRock sees a “big, large use case,” noting that his earlier skepticism shifted since the launch of its Bitcoin ETF. Armstrong agreed, saying there is “no chance” the asset falls to zero.
Related: Coinbase Challenges Bank Claims on Stablecoin Incentives
Banks Position Themselves Ahead of 2026 Rulemaking
These developments align with expectations that federal guidance for stablecoins and tokenized settlement will strengthen through 2025 and will continue in 2026. Banks appear to position themselves early to avoid falling behind fintech firms and global rivals that already run large-scale tokenization pilots.
Armstrong said regulatory wins such as the Genius Act, passed in July 2025, helped clarify stablecoin requirements. He added that the U.S. now moves “back on offense” as clarity improves. However, he noted that more steps are needed to support predictable operations for banks and exchanges.
Meanwhile, Major U.S. banks entering stablecoin pilots with Coinbase shows a shift from research to real deployment. Their work indicates rising corporate demand, global competition, and expectations of stricter federal rules. The activity shows how banking infrastructure moves toward on-chain systems as institutions prepare for wider adoption.
