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Coinbase CEO Considers Non-Partial Reserve Banking After Silicon Valley Bank Collapse

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Coinbase CEO Considers Non-Partial Reserve Banking After Silicon Valley Bank Collapse

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.

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

Analysis based on this information:


Brian Armstrong, the CEO of Coinbase, has revealed that his company considered a “high net worth+new commercial bank” model and transferring assets to community banks and reserves in response to the collapse of the Silicon Valley bank. However, the company found that it needed to provide more functions such as fund wire transfer outbound and multi-user support to make this model work.

Armstrong’s comments suggest that Coinbase was exploring alternative banking models after the Silicon Valley bank collapse. The Silicon Valley bank was one of the few banks that were willing to work with cryptocurrency exchanges, and its demise caused significant disruption in the industry. Coinbase’s consideration of a “high net worth+new commercial bank” model indicates that it was looking for a way to maintain financial stability while also providing better services to its clients.

However, according to Armstrong, Coinbase realized that it needed to provide more functions to make this model work. This is not surprising, given the complexity of the cryptocurrency industry and the need for exchanges to provide a wide range of services to their clients. Fund wire transfer outbound and multi-user support are essential features that allow customers to transfer funds easily and efficiently and manage their accounts effectively.

The CEO’s comments regarding non-partial reserve banking are also noteworthy. This banking model is based on the idea that banks should hold all of the funds deposited by their customers and not lend them out. While this model is not widely used, it may become more attractive to cryptocurrency exchanges that are looking for ways to provide their customers with more security and stability. In this model, customers’ funds are fully backed by reserves, which can provide greater confidence in the safety of their holdings.

Overall, Coinbase’s exploration of alternative banking models reveals the challenges that cryptocurrency exchanges face in maintaining financial stability while also providing excellent customer service. The company’s consideration of a “high net worth+new commercial bank” model and non-partial reserve banking reflects the complexity of the cryptocurrency industry and the need for innovative approaches to managing financial transactions.

In conclusion, Coinbase is a leading cryptocurrency exchange that is constantly looking for ways to improve its services and remain competitive. Armstrong’s comments demonstrate the company’s commitment to finding innovative solutions to the challenges it faces and its willingness to explore new models of banking to achieve its goals.

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