In Q3 2025, Coinbase reported a striking $355 million in revenue from its stablecoin operations. This figure shows a key shift in the financial landscape, as traditional banks face increasing scrutiny due to their outdated offerings. Brian Armstrong, CEO of Coinbase, argues that stablecoins not only serve as a vehicle for transactions but also allow users to earn yield on their deposits in a way that conventional banks simply do not.
Stablecoins vs. Traditional Banking: A Fundamental Shift
Armstrong's critique of the banking sector goes beyond mere rhetoric. He posits that the current fractional reserve banking model is fundamentally flawed: banks take deposits, lend them out, and return only a fraction of the earnings to the depositors. In contrast, stablecoins offer a model where yields from underlying assets, often US Treasuries, can flow directly to users. This potential for
