In a recent appearance on the Bankless Podcast, Coinbase CEO and co-founder Brian Armstrong discussed the company's founding principles, future outlook on the industry, and his perspectives on emerging trends like the metaverse and NFTs. As the leader of the first Nasdaq-listed crypto exchange, Armstrong provided unique insights into where crypto is headed next.
The Founding and Values of Coinbase
Host: Let's welcome our guest—Brian Armstrong, CEO and co-founder of Coinbase.
Brian Armstrong: Thank you for having me. I've been a listener of your podcast and have been very impressed.
Host: The pleasure is mine. I've been a longtime Coinbase user—I bought my first Bitcoin on your platform. Coinbase truly made the experience secure and effortless, helping me overcome many initial hurdles. So I want to thank you for creating such an excellent product.
Brian Armstrong: I'm honored to have helped more people enter the crypto space, which in turn has improved the entire ecosystem. But this is just the beginning. Our next challenge is making crypto usable in everyday life through innovative yet simple solutions.
Host: Coinbase launched in 2012. Could you take us back to those early days?
Brian Armstrong: We started with just three people—me, Fred Ehrsam, and Olaf Carlson-Wee. Our goal was to build something customers needed. When I first read the Bitcoin whitepaper, I immediately recognized its potential as a global, decentralized protocol for transferring value.
Initially, we created a Bitcoin custodial wallet, but users didn't adopt it because they had no Bitcoin to store. That's when we added a "Buy" button—the turning point that accelerated Coinbase's growth.
What Keeps Armstrong at Coinbase?
Host: Why did you found Coinbase, and what motivates you to stay?
Brian Armstrong: I've always been passionate about economic freedom. When I discovered Bitcoin, I saw it as the next internet-level innovation.
I love tackling new challenges as CEO—pushing beyond comfort zones to learn and create. My vision is for 1 billion people to access open financial systems through our products.
Host: Between money, technology, and values, which matters most to you?
Brian Armstrong: Values, undoubtedly. Living in Argentina during its hyperinflation crisis showed me how monetary instability erodes wealth—especially for the poor. Crypto represents financial freedom's future.
Within 20 years, I believe it will become a significant part of global GDP, reducing economic friction worldwide.
Coinbase’s Strategic Positioning
Three Core Customer Groups:
- Retail Investors: Aiming to be their preferred crypto platform.
- Institutions: Serving as a qualified custodian and prime broker for OTC trading.
- Developers: Building services via Coinbase Cloud for seamless crypto integration.
On DeFi and Regulation:
Brian Armstrong: We view DeFi as a partner, not a competitor. Our Coinbase Wallet (a self-custody solution) has grown 3x year-over-year, allowing users to access DeFi ecosystems easily.
Regarding regulators, Armstrong expressed frustration with the SEC's unclear policies, particularly around lending products. He hopes for more transparent, evenly enforced rules but is prepared for potential legal battles if necessary.
NFTs and the Metaverse
Coinbase’s NFT platform saw 3.5 million sign-ups in its first three days. Armstrong emphasized making NFTs social and accessible—integrating features like profiles, follow functions, and achievement badges to onboard mainstream users.
On Facebook’s metaverse pivot:
Armstrong: "Zuckerberg’s move is brilliant. AR/VR is computing’s future, and Meta is smart to rebrand. Apple and Google missed this wave entirely.
For Coinbase, we want to be where people store digital goods across any metaverse iteration—not by building games/UIs but by enabling seamless asset portability."
Looking Ahead: Crypto’s Next Decade
Armstrong: "The first decade was about crypto’s birth—speculation and trading. The next will focus on utility: NFTs, DeFi, voting systems, decentralized social media, and more.
As adoption grows, so will crypto’s strength. My job? Ensure Coinbase keeps innovating—allocating 10% of resources to explore new frontiers—or risk being disrupted by the next wave of startups."
FAQs
Q: How does Coinbase plan to compete with traditional banks?
A: Armstrong believes self-custody is the long-term trend. While this may hurt Coinbase’s custodial business short-term, empowering users aligns with crypto’s decentralized ethos.
Q: What’s Coinbase’s stance on blockchain interoperability?
A: The company avoids backing specific chains. Instead, its protocol team works on scaling solutions for existing blockchains (e.g., Layer 2s) to benefit the entire ecosystem.
Q: Will Coinbase launch its own blockchain?
A: No. Armstrong rejected this idea in 2018, citing decentralization concerns. He prefers improving public blockchains over creating a Coinbase-controlled chain.
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