Is Coinbase becoming a crypto bank?

Whether Coinbase is becoming a "crypto bank" depends on your definition of the term. Here's a breakdown:

Coinbase's Current Offerings:

• Crypto exchange: Coinbase primarily operates as a platform for buying, selling, and trading cryptocurrencies.

• Custody services: They offer secure storage for crypto assets.

• Fiat on/off ramps: Users can connect bank accounts to buy and sell crypto with traditional currency.

• Staking and earning: Users can earn rewards by holding certain cryptocurrencies.

• Coinbase Card: Allows spending crypto for everyday purchases.

What it's NOT doing:

• Holding deposits: Currently, Coinbase doesn't hold user deposits like a traditional bank account.

• Offering loans or credit: Similar to above, they don't currently offer traditional financial services like loans or credit cards.

• FDIC insurance: Unlike traditional banks, deposits held with Coinbase are not insured by the FDIC.

The Future:

Coinbase has expressed interest in expanding its offerings and potentially becoming more like a traditional bank. They've:

• Applied for a banking license in Wyoming.

• Launched Coinbase Prime, offering institutional-grade custody and trading services.

• Partnered with banks to offer crypto services within their platforms.

So, the answer is nuanced:

• Coinbase isn't currently a full-fledged "crypto bank" as it lacks some key features.

• However, they are expanding their offerings and exploring ways to become more like a traditional bank.

• It's important to keep in mind that crypto regulations are still evolving, and the landscape could change quickly.