BlockNews
FOLLOW ON X
  • BITCOIN
  • CRYPTO
    • ETHEREUM
    • RIPPLE XRP
    • SOLANA
    • CARDANO
    • BINANCE BNB
    • DOGECOIN
    • TRON
    • SUI
    • CHAINLINK
    • LITECOIN
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • OPINION
No Result
View All Result
BlockNews
  • BITCOIN
  • CRYPTO
    • ETHEREUM
    • RIPPLE XRP
    • SOLANA
    • CARDANO
    • BINANCE BNB
    • DOGECOIN
    • TRON
    • SUI
    • CHAINLINK
    • LITECOIN
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • OPINION
No Result
View All Result
BlockNews
Home BUSINESS

Coinbase CEO Weighs in on Banking Features After Silicon Valley Bank Crisis

BlockNews Team by BlockNews Team
March 15, 2023
in BUSINESS, CRYPTO, FINANCE, MEDIA
Reading Time: 3 mins read
1
SHARES
14
VIEWS
Share on XShare in TelegramShare on Reddit
  • Coinbase CEO Brian Armstrong has discussed the potential of providing cryptocurrency services in response to the closure of Silicon Valley Bank (SVB) and Signature Bank.
  • The news of SVB’s closure caused a scramble for financial assets held at the bank, particularly for Circle who had $3.3 billion of its $40 billion reserves locked up with the service
  • The fallouts from SVB and Signature Bank have revealed underlying issues with digital asset custodial services, prompting more companies to explore alternative solutions with greater security and autonomy.

Coinbase CEO Brian Armstrong has taken to Twitter to discuss the potential of providing cryptocurrency services in response to the closure of Silicon Valley Bank (SVB) and Signature Bank. Armstrong said that Coinbase had previously considered offering features that could bypass or bridge gaps exposed by mainstream banking issues, such as outbound wires, multi-user support, and non-fractional reserve “banking” services.

After Evertas Insurance CSO asked Armstrong about setting up Coinbase as an “HNW + business neobank,” he said, 

“Definitely something we’ve thought about. Need a few more features like outbound wires, multi-user support, etc. Non-fractional reserve “banking” is looking more attractive right now.”

The news of SVB’s closure caused a scramble for financial assets held at the bank, mainly for Circle, which had $3.3 billion of its $40 billion reserves locked up with the service. This further prompted high net-worth individuals and businesses to take a closer look at ties with traditional finance institutions leading Armstrong to comment on the matter.

At present, Coinbase confirmed that it had around $240 million held at Signature Bank but expects to recover all of its cash holdings. In addition, Bloomberg reports suggesting that a fund may be created by The United States Federal Reserve and Federal Deposit Insurance Corporation to cover deposits at other struggling banks.

The ripple effects of the bank closure continue to be felt across the cryptocurrency industry, with temporary market fluctuations caused by suspended transactions and a lack of clarity surrounding what will happen to funds held at SVB and Signature Bank.

The uncertainty has also impacted digital asset custody services, with some firms needing more access to these banking services. Coinbase confirmed it is exploring alternative avenues, such as self-custodial solutions and additional partnerships to reduce reliance on traditional banks.

Amidst the chaos brought on by the closures, Coinbase CEO Brian Armstrong aims to ensure that crypto community members can continue accessing services safely and securely.

Though no concrete steps have been taken yet, Armstrong’s words have been noticed as entrepreneurs, investors, and developers consider potential solutions for crypto banking after Silicon Valley Bank’s demise. The next few weeks will bring new developments for users as some companies rush to fill the gap left behind.

Bitcoin Rises After Bank Closures

Miraculously, Bitcoin hit a bottom of $19,000 after SVB and Signature Bank closed. In just a few days, BTC returned to more than $1 trillion in market cap – one of the fastest recoveries in recent history.

Despite the positive news surrounding BTC’s return to peak performance, investors must still be wary of traditional banks’ stability and long-term viability. The fallouts from SVB and Signature Bank have highlighted some underlying issues surrounding digital asset custodial services and the industry.

Given recent events, the coming days will be an exciting watch regarding neobank development prospects within crypto and what actions Coinbase may take. Indeed, the failure of Silicon Valley Bank could prove instrumental as more companies consider transitioning away from traditional banking systems towards alternative solutions with greater security and autonomy.

Disclaimer: BlockNews provides independent reporting on crypto, blockchain, and digital finance. All content is for informational purposes only and does not constitute financial advice. Readers should do their own research before making investment decisions. Some articles may use AI tools to assist in drafting, but every piece is reviewed and edited by our editorial team of experienced crypto writers and analysts before publication.
Tags: BitcoinCoinbasecryptoCrypto ExchangeSilicon Valley BankSVB
TweetShareShare
BlockNews Team

BlockNews Team

DON'T MISS THESE! HOT OFF THE PRESS

Gavin Newsom Teases “Trump Corruption Coin” in Latest Jab at President Trump
CRYPTO

Gavin Newsom Teases “Trump Corruption Coin” in Latest Jab at President Trump

September 2, 2025
Strategy Expands Bitcoin Treasury: 4,048 BTC Added in $449M Purchase
BITCOIN

Strategy Expands Bitcoin Treasury: 4,048 BTC Added in $449M Purchase

September 2, 2025
VeChain Price Prediction: Can VET Hit $0.035 in September 2025?
CRYPTO

VeChain Price Prediction: Can VET Hit $0.035 in September 2025?

September 2, 2025
Musk’s DOGE Treasury Push: A $200M Dogecoin Fund on the Horizon
CRYPTO

Musk’s DOGE Treasury Push: A $200M Dogecoin Fund on the Horizon

September 2, 2025
XRP and JP Morgan: Why This News Is Shaking Things Up
CRYPTO

XRP and JP Morgan: Why This News Is Shaking Things Up

September 2, 2025
PENGU Holds Key Support as Traders Wait for Next Move
CRYPTO

PENGU Holds Key Support as Traders Wait for Next Move

September 2, 2025
Load More

Related News

Gavin Newsom Teases “Trump Corruption Coin” in Latest Jab at President Trump

Gavin Newsom Teases “Trump Corruption Coin” in Latest Jab at President Trump

September 2, 2025
Strategy Expands Bitcoin Treasury: 4,048 BTC Added in $449M Purchase

Strategy Expands Bitcoin Treasury: 4,048 BTC Added in $449M Purchase

September 2, 2025
VeChain Price Prediction: Can VET Hit $0.035 in September 2025?

VeChain Price Prediction: Can VET Hit $0.035 in September 2025?

September 2, 2025
Musk’s DOGE Treasury Push: A $200M Dogecoin Fund on the Horizon

Musk’s DOGE Treasury Push: A $200M Dogecoin Fund on the Horizon

September 2, 2025
XRP and JP Morgan: Why This News Is Shaking Things Up

XRP and JP Morgan: Why This News Is Shaking Things Up

September 2, 2025
Twitter Telegram Threads

BLOCKNEWS.COM

BlockNews is your premier source for real-time cryptocurrency, blockchain, political and financial market news.

Stay ahead of the herd with BlockNews

RESOURCES

  • About Us
  • Contact Us
  • Editorial Policies
  • Terms and Conditions
  • Privacy Policy
  • Sitemap

DISCLOSURES AND POLICIES

BlockNews provides independent reporting on crypto, blockchain, and digital finance. Content is for informational purposes only and does not constitute financial advice. Sponsored material is always disclosed. By using this site, you agree to our Terms and Conditions and Privacy Policy.

© 2025 BlockNews

No Result
View All Result
  • HOME
  • BITCOIN
  • CRYPTO
    • ETHEREUM
    • RIPPLE XRP
    • SOLANA
    • CARDANO
    • BINANCE BNB
    • DOGECOIN
    • TRON
    • LITECOIN
    • CHAINLINK
    • SUI
  • MEMECOINS
  • POLITICS
  • FINANCE
  • NFT
  • DEFI
  • GUIDES

© 2025 BlockNews