Davos Confidential: Major banks acknowledge Coinbase CEO's statement that cryptocurrencies are an "existential threat," marking a productive start to industry-wide transformation.

At Davos, where the World Economic Forum was held, Coinbase CEO Brian Armstrong made a shocking testimony. He revealed that directly from executives of the world’s top 10 major banks, cryptocurrency is currently their bank’s “top priority” and at the same time regarded as a “matter of existential concern.” This statement vividly illustrates how traditional financial institutions are responding to the changes brought about by cryptocurrencies and their current situation.

Although Armstrong did not disclose the names of the banks or the specific identities of the executives, he stated that many financial leaders he met at Davos are not only open to cryptocurrencies but are actively exploring ways to enter this space. “Most of them are very favorable towards cryptocurrencies and see them as a business opportunity,” he said, indicating a dramatic shift in mindset within the traditional financial sector.

Rapid Shift in Focus of Financial Institutions: Tokenization and Stablecoins

One of the most actively discussed topics at Davos was asset tokenization. This trend, expanding from stablecoins to stocks, credit, and other financial products, is poised to bring significant changes to the financial infrastructure itself.

Armstrong pointed out that an estimated 4 billion adults worldwide lack access to high-quality investments through “intermediary-free” channels. As tokenization advances, the layers outside the banking system could directly connect to global financial markets, creating new opportunities.

For traditional financial institutions, this marks a major turning point. Future global asset management firms and fintech companies will be able to bypass traditional banks entirely by offering tokenized securities and stablecoin-based remittance services, enabling instant transfer of value without intermediaries. The very “intermediary functions” that financial institutions have historically monopolized are now under threat.

“Major progress is expected by 2026,” Armstrong added. In fact, the development of tokenization infrastructure is accelerating across the industry, with many financial institutions rushing to adapt.

Bridging the 4 Billion Gap: Building Infrastructure for Digital Assets

The greatest value offered by cryptocurrencies and tokenization lies in including those who are excluded from the financial system. For the majority of the world’s population without access to traditional bank accounts or investment products, cryptocurrencies could serve as a gateway to new opportunities.

This movement is not just a technological innovation but is also beginning to function as a meaningful tool to reduce economic disparities. For digital assets to truly serve as productive social infrastructure, regulatory frameworks and mainstream participation by financial institutions are essential—and this is precisely what is about to happen.

Clarifying the Regulatory Environment: Maintaining U.S. Competitiveness

Armstrong emphasized that political support for cryptocurrencies in the U.S. is strengthening. Legislation such as the CLARITY Act, promoted during the Trump administration, aims to establish clear rules for the industry.

He praised the Trump administration as “the most crypto-friendly government in the world” and stressed the importance of regulatory clarity. As other countries, including China, invest heavily in stablecoin infrastructure, providing an appropriate regulatory framework in the U.S. is crucial for technological development and maintaining industry competitiveness.

In reality, regulatory ambiguity has hindered the development of the crypto industry, and resolving this could serve as a catalyst for more substantial participation by financial institutions.

AI Agents and Cryptocurrencies: Next-Generation Payment Infrastructure

Another key theme discussed at Davos was the relationship between artificial intelligence (AI) and cryptocurrencies. While AI’s rise is attracting attention in capital markets, Armstrong emphasizes that the two are deeply interconnected.

He foresees a rapid increase in autonomous AI agents making decisions and executing payments in the future. In such scenarios, AI agents utilizing stablecoins would be a natural choice, forming a payment system that completely bypasses traditional identity verification processes and banking restrictions.

“The infrastructure already exists, and its adoption is rapidly expanding,” Armstrong added. In other words, the technological foundation for such future systems is already in place, and the speed of future adoption will be critical.

A Turning Point for Industry: Cryptocurrencies Are No Longer Peripheral

The message from Armstrong’s stay in Davos is very clear. Cryptocurrencies are no longer an experimental presence on the periphery of the financial system. For at least some of the world’s largest financial players, this has become a strategic priority and even a matter of organizational survival.

The challenges faced by traditional banking models are not just about competition but also about their ability to adapt to structural transformation. Tokenization, stablecoins, and the integration of AI and cryptocurrencies are all forces aiming to reshape financial intermediation into more efficient and transparent forms. Whether institutions can adapt to this productive evolution or become marginalized will determine their future.