Brian Armstrong discussed several areas where he believes the financial system still needs significant modernization.
Coinbase CEO Brian Armstrong said the financial system still requires major improvements, and emphasized that it will take significant technological innovation and political work to achieve them.
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Shift towards real-world tokenized assets
Armstrong fixed that tokenization of assets such as real estate, stocks, bonds, and funds on blockchain networks allows for instant settlement, fractional ownership, and broader distribution. Financial institutions are increasingly exploring tokenization as a way to modernize settlement processes, asset ownership, and investor access while remaining compliant with existing legal and financial frameworks.
The IMF said in an April 2 note that tokenization represents a fundamental reconfiguration of the financial architecture. Industry forecasts also estimate that the RWA tokenization market could reach $5 trillion by 2030, driven largely by tokenized Treasuries.
Chainlink’s Sergey Nazarov previously said that the migration of real-world assets to blockchain networks continues regardless of movements in cryptocurrency prices. He also noted the growth of on-chain perpetual markets linked to commodities such as silver, adding that these markets are becoming increasingly competitive with traditional financial systems.
Armstrong also called for 24/7 global operations with pooled liquidity, better leverage and greater capital efficiency. In terms of payments, he said stablecoins could support low-cost, near-instant global transfers, including agent payments.
AI-powered finance
The Coinbase CEO further highlighted the role of AI-powered systems in improving risk management, credit, compliance, fraud prevention and financial advice, while expanding access to capital. Interestingly, Coinbase has already cut around 14% of its workforce as it moved to become a more AI-focused company. Armstrong had previously said that AI tools allowed smaller teams to complete work faster, automate tasks and operate more efficiently across the company.
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Regarding regulation, the executive advocated moving away from one-size-fits-all frameworks and adopting risk-based rules that encourage innovation and competition. He also advocated for open protocols and self-custodial wallets to expand financial access to anyone with a smartphone.
Armstrong also pointed to easier capital formation for startups and described “sound money” as a haven against inflation when discipline on fiat currencies weakens.
