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.
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