Coinbase CEO Says Banks Will Push for Interest-Bearing Stablecoins
Coinbase CEO Brian Armstrong said he expects U.S. banks will eventually reverse their stance on stablecoins and begin pressing Congress to allow interest to be paid on stablecoin balances. Armstrong framed this as an emerging alignment of incentives: banks need programmable, on-chain liquidity and could push for a legal framework that treats interest-bearing stablecoins as a normal part of financial plumbing. If banks do lobby for interest-bearing stablecoins, the change would have broad implications — it could increase competition with traditional deposits, expand yield-bearing crypto products, and accelerate institutional adoption. For regulators and retail users alike, the shift raises questions about consumer protections, reserve transparency, and monetary implications; investors should watch legal and legislative developments closely as they could materially alter the stablecoin landscape.