US Banks Pilot Stablecoins and Bitcoin Trading with Coinbase Under Trump Policies

Bitcoin

US Banks Pilot Stablecoins and Bitcoin Trading with Coinbase Under Trump Policies

Coinbase has launched live pilots with major U.S. banks to test stablecoins, custody services, and crypto trading, marking a significant step toward mainstream financial integration. These initiatives, announced by CEO Brian Armstrong, align with favorable policies under President Donald Trumps second term, despite ongoing market volatility.

• Pilots focus on stablecoins for efficient payments and crypto custody for secure asset management.
• Banks view cryptocurrency as a core business opportunity, not experimental.
• Global stablecoin market could reach $3 trillion by 2030, boosting demand for U.S. Treasury bills per Treasury Secretary Scott Bessent.

What Are Coinbases Stablecoin Pilots with US Banks？

Coinbases stablecoin pilots with US banks involve collaborative trials with some of the largest financial institutions to integrate stablecoins, custody solutions, and crypto trading into traditional banking operations. Launched this week as per CEO Brian Armstrongs comments at the New York Times DealBook Summit, these pilots aim to streamline payments, enhance security, and explore tokenized assets. Despite recent market downturns, they signal growing institutional confidence in blockchain technology for real-world applications.

How Is the New Stablecoin Framework Influencing Bank Involvement？

The recent federal framework for stablecoins, established under President Donald Trumps second term, has encouraged banks to engage more deeply with digital assets. This legislation requires issuers to back tokens fully with Treasury bills and cash equivalents, promoting stability and trust. According to Treasury Secretary Scott Bessent, the stablecoin market could expand from $300 billion to $3 trillion by 2030, potentially increasing demand for short-term U.S. debt and easing borrowing costs across the economy.

Strategists from JPMorgan, Deutsche Bank, and Goldman Sachs caution that while promising, stablecoins alone won‘t resolve broader U.S. funding challenges. Fed Governor Stephen Miran highlights overseas potential, noting that in regions with limited dollar access, stablecoins could attract zero-yield holdings, reminiscent of past global savings gluts that influenced Federal Reserve policies. This framework also prompts international responses, with the European Central Bank and People’s Bank of China accelerating their digital currency developments to counter potential capital shifts.

BlackRock CEO Larry Fink, speaking alongside Armstrong, emphasized the transformative potential of tokenization. He pointed out that $4.1 trillion in digital wallets worldwide, predominantly in stablecoins, could facilitate freer movement of assets if stocks, bonds, and real estate follow suit. Fink‘s evolution from criticizing Bitcoin in 2017 to managing the largest Bitcoin ETF underscores shifting Wall Street attitudes, with leaders like Jamie Dimon of JPMorgan, Brian Moynihan of Bank of America, and Jane Fraser of Citigroup now expressing interest. Morgan Stanley’s integration of crypto trading on its E*Trade platform exemplifies this trend.