Coinbase CEO says Crypto Industry is Headed Towards DeFi

Divya  |  Jun 30, 2021

Coinbase’s CEO Brian Armstrong thinks that his company needs to help people access the “decentralized crypto-economy” amid rapid changes in the industry. In a blog post published on Tuesday, Armstrong listed how Coinbase will embrace the wide-ranging products and services emerging in the crypto sector with a special focus on DeFi.

Coinbase to Adapt Platform for Maturing Sector and Incorporate DeFi

According to Armstrong, the crypto sector is quickly maturing to incorporate the trading of new types of assets. He noted that there has been an expansion from its initial use case of trading bitcoin to the trading of thousands of new assets, and the adoption of new use cases like Decentralized Finance (DeFi), NFTs, smart contracts, Decentralized Autonomous Organizations (DAOs), and more.”
The wide array of trading avenues present a massive opportunity for Coinbase to evolve its platform and increase its offerings for the customers. Armstrong stated that just as the platform “helped people access bitcoin for the first time … we need to do the same for the decentralized crypto-economy.”
Armstrong asserted that Coinbase must strive to add new assets to its platform faster. The firm uses a rigorous process to determine the legality, security, and other risks associated with digital assets with a set of 70 review questions. While this process has ensured a responsible expansion of the platform’s offerings, Armstrong feels it needs to be expedited to court more asset issuers. He added, "The goal is to list all legal assets and empower users to make their own risk-adjust decisions.”

To support new assets, the company is planning to create an “experimental” space that will educate customers on the risks related to such assets, while giving them the freedom to make an informed choice.

Coinbase to Ship Products Globally 

The leading crypto exchange is gearing up to expand its operations internationally. Armstrong thinks that Coinbase has been working well with the regulators in the US, UK, and even EU, creating “enormous value” for its customers as a result. But that could lead to “products that are hyper-focused on the western world.”
To correct this approach, Coinbase will start shipping more products to international markets, while still collaborating with authorities “in more established markets.” 
Additionally, Armstrong announced that the firm will allow users of its app to access “any app built on decentralized crypto rails.” He also mentioned that in the future Coinbase users will be able to do self-custody of their crypto via the main app.

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