Coinbase CEO: considered “transferring assets to community banks and reserves”

According to reports, Brian Armstrong, the CEO of Coinbase, said in response to Ryan Lacey, the chief strategic officer of Evertas, a crypto asset insurance company, that after the collapse of the Silicon Valley bank, Coinbase considered selecting a “high net worth+new commercial bank” model, “transferring assets to community banks and reserves”, but needed to provide more functions, such as fund wire transfer outbound, multi-user support, etc, Brian Armstrong also said that “non-partial reserve banking” now looks more attractive.

Interpretation of this information:

In a recent statement, Brian Armstrong, the CEO of Coinbase, shared his thoughts on the company’s banking model, following the collapse of the Silicon Valley bank. According to reports, Armstrong mentioned that Coinbase had been considering a “high net worth+new commercial bank” model, which involves moving assets to community banks and reserves. However, Armstrong also highlighted the need for additional features, such as fund wire transfer outbound and multi-user support.

One interesting point that Armstrong brought up was the idea of “non-partial reserve banking,” which he stated was becoming more attractive. This type of banking involves holding a fraction of customer deposits, while the rest is invested in other activities to generate profits. This model is different from the “full-reserve” system, which involves holding 100% of customer deposits in reserves.

Overall, Armstrong’s comments suggest that Coinbase is exploring various options for its banking model. It is interesting to note that Armstrong emphasized the need for more functionality in the banking system, indicating that Coinbase is focused on providing a comprehensive service for its customers.