Seven of the biggest banks in the world are making use of Coinbase infrastructure for their instant money transfers, says Coinbase Institutional. With the aid of stablecoins such as USDC and blockchain, funds can be moved anywhere on the planet in an instant, a capability that is changing the way the financial system does business.
Major Banks Embrace Coinbase Infrastructure
With the likes of Citibank among them, seven of the world’s biggest banks have turned to Coinbase infrastructure for the instant transfer of stablecoins like USDC. In what is a first for traditional financial institutions, this is an important step in the adoption of blockchain technology. The reason for the integration, as Coinbase Institutional stated in its most recent update, lies in the progress made by blockchain and the popularity of stablecoins; they are what make borderless transactions so fast.
There is more to it than speed, however. The use of Coinbase’s infrastructure gives these banks the flexibility to do business outside of normal banking hours and makes them more competitive. One could say this is the start of something new in global finance, with digital assets and the old guard of banking working together.
The Role of Stablecoins and Institutional Adoption
Stablecoins such as USDC are at the center of this transformation. They are an instant and dependable means of moving money, pegged to the dollar; in fact, they are seeing transaction volumes in excess of $400 million an hour. The fact that 73% of these transactions occur when U.S. banks are closed highlights the need for round-the-clock financial services.
There has been a second wave of crypto adoption in which digital assets are being made part of the core business of some of the more established players in finance. In the wake of the introduction of crypto ETFs, institutional investors have accelerated their entry into the market, according to Coinbase Institutional. Banks and payment service providers are now making mainstream use of Coinbase infrastructure and stablecoins.
Expansion Beyond Banks: PSPs and Tech Giants Join In
At Coinbase Institutional, the outlook is for a rapid increase in platform usage by payment service providers over the course of the year, and more banks are expected to follow suit. The acquisition of Deribit has put the company in a position to provide options trading; this is one of the factors that has attracted additional institutional clients.
Then there is the matter of the company’s infrastructure, which major players in the tech and financial world such as Amazon and JP Morgan have been using. Such wide acceptance by these firms means they can make a smooth transition to having cryptocurrencies on their platforms, similar to what is happening with the move to blockchain finance on a global scale.
Discover how Coinbase’s infrastructure supports seamless transactions that can benefit prop firm traders with funded accounts. prop firm with funded accounts.
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