Global Banks Recognize Crypto as Strategic Imperative, Coinbase CEO Reports from Davos

During the World Economic Forum, Coinbase CEO Brian Armstrong revealed a striking shift in how legacy financial institutions view crypto. According to Armstrong, a top executive from one of the world’s 10 largest banks disclosed that digital assets have become their institution’s “number one priority” and represent an “existential” challenge requiring urgent strategic response. This candid admission underscores a fundamental transformation in how traditional finance perceives the crypto sector—no longer dismissing it as a fringe experiment, but acknowledging it as a critical business concern.

Armstrong’s observations from Davos suggest that financial leaders attending the forum aren’t merely open to crypto development; many are actively exploring entry strategies. “Most of them are actually very pro crypto and are leaning into it as an opportunity,” Armstrong noted. This pivot reflects the growing recognition that institutions ignoring digital asset infrastructure risk losing competitive advantage as the sector continues its mainstream adoption trajectory.

Tokenization of Assets Reshapes Financial Access Globally

The conversation at Davos centered heavily on tokenization, with Armstrong identifying it as one of the most prominent themes discussed among global finance leaders. The potential goes far beyond stablecoins, extending into equities, credit instruments, and various other financial products. This expanded application of blockchain-based asset representation could fundamentally alter how markets operate.

The crypto implications are profound. For traditional intermediaries, tokenization represents both immediate threat and long-term opportunity. Direct peer-to-peer transfers of tokenized securities, instant settlement without clearing delays, and elimination of multiple middlemen could reshape value transfer entirely. The potential for disintermediation—where global asset managers or fintech platforms bypass legacy banking infrastructure entirely—looms as a tangible possibility.

Armstrong highlighted a compelling statistic: approximately 4 billion adults worldwide currently lack access to high-quality investment opportunities. Tokenization infrastructure could bridge this critical gap, enabling billions to participate in global markets through crypto-native platforms. “Expect some major progress here in 2026,” Armstrong predicted, suggesting accelerating development in this space.

Regulatory Clarity Becomes Competitive Necessity

The crypto sector’s development increasingly depends on regulatory frameworks that provide certainty without stifling innovation. Armstrong emphasized that political support for crypto in the United States appears to be strengthening, particularly through the Trump administration’s push for crypto-focused legislation such as the CLARITY Act. This regulatory push aims to establish clear digital asset rules, ensuring the U.S. maintains competitive positioning.

Armstrong characterized the current administration as “the most crypto-forward government in the world,” highlighting the geopolitical dimension of crypto policy. As countries like China invest heavily in stablecoin infrastructure development, regulatory clarity becomes not merely a sector concern but a national competitiveness issue. Clear rules enable institutional participation, attract development talent, and position nations as fintech innovation hubs.

AI Payments Infrastructure Unlocks New Stablecoin Use Cases

Armstrong identified artificial intelligence and crypto as the two most-discussed technologies at Davos, and crucially, emphasized their interconnection. While capital markets have often treated AI’s emergence and crypto’s development as competing narratives, Armstrong argued they are fundamentally linked.

The emerging scenario involves AI agents increasingly defaulting to stablecoins for transactional settlement—bypassing conventional identity verification, geographic banking restrictions, and legacy payment rails entirely. This represents a significant use case expansion for crypto infrastructure. “The infrastructure exists, and usage is rapidly growing,” Armstrong noted, suggesting that AI-driven stablecoin adoption is transitioning from theoretical to operational. This convergence could accelerate crypto adoption across enterprise and consumer applications.

The Turning Point for Institutional Crypto Adoption

Armstrong’s Davos summary conveyed a decisive message: crypto has graduated from experimental technology to institutional strategic necessity. The acknowledgment from top-tier financial executives that crypto poses an existential challenge—coupled with their simultaneous efforts to participate rather than resist—signals a permanent shift in the financial landscape. For institutional investors, fintech platforms, and traditional banks alike, navigating the crypto economy is no longer optional. It has become a central business imperative.