Coinbase Sells Infrastructure to Banks Entering Crypto
Banks are launching digital asset services and Coinbase wants to be their plumbing. The dual role as trader and supplier is the open question.
Banks are becoming Coinbase's customers rather than only its competitors: Coinbase Institutional says it supplies infrastructure for bank-launched digital asset services while expanding Coinbase Prime. The reported model is custody, financing and settlement sold to banks, but Coinbase also trades, so the dual role is the open question.
The Ledger Desk · 3 min read- Coinbase Institutional head Liz Martin told Bloomberg that prime brokerage is one of the fastest-growing areas of the business, per PYMNTS (Oct. 8, 2026); no revenue figure was given in the coverage reviewed.
- BNY, DBS Bank and U.S. Bank already offer crypto custody, and Deutsche Bank has announced plans to enter, so banks are building services as well as buying them.
- Martin rejects any conflict from Coinbase both trading and supplying banks; that is her position, and it is not independently tested.
- The Samsung Wallet arrangement, with Coinbase Prime custodying Circle's USDC balances, is a reported example of infrastructure revenue away from trading.
- Watch whether banks keep Coinbase as a supplier or move custody in-house as their own services mature.
Coinbase is positioning itself as the infrastructure layer for banks entering digital assets. In an interview with Bloomberg News on Oct. 8, 2026, Liz Martin, head of Coinbase Institutional, said banks are launching their own crypto services and that Coinbase is supplying the plumbing while building out its prime offerings, as summarized by PYMNTS. The pitch is mechanism-first: custody, financing and settlement sold to regulated institutions. What the coverage does not supply is revenue, client names or terms, so the commercial scale remains a company claim.
Prime brokerage is the product banks are buying
Martin called prime brokerage one of the fastest-growing areas of Coinbase's business, according to PYMNTS' account of the Bloomberg interview. Prime brokerage in this context bundles custody, trading financing and settlement, the functions a bank needs before it can offer crypto to clients without building each piece itself. No growth rate or revenue figure appeared in the coverage reviewed, so the claim is directional. Other crypto firms are building similar prime services, which means Coinbase is selling into a contested market.
Banks are building as well as buying
Banks are not only customers. PYMNTS reports that BNY, DBS Bank and U.S. Bank already offer crypto custody, and that Deutsche Bank has announced plans to enter. That matters for Coinbase's supplier role: a bank with its own custody has less reason to depend on an outside provider over time. Coinbase's earlier statements fit this picture of partnership: Bloomberg reported in December 2025 that large banks were running pilots with Coinbase on stablecoins, custody and trading, though CEO Brian Armstrong did not name them.
The dual-role question remains unresolved
Martin said Coinbase faces no conflict from both trading and supplying infrastructure, arguing that wider traditional-finance participation benefits both sides because each is driven by institutional adoption. That is the company's position, and PYMNTS reports no independent test of it. A bank buying custody and prime services from a firm that also runs its own markets will want clear terms on data use, client segregation and execution, points the coverage does not address.
Samsung and Deribit show the wider push
Two reported moves show where Coinbase is extending. Per PYMNTS, citing Bloomberg, Coinbase Prime will custody Circle's USDC balances in Samsung Wallet, with USDC becoming the default dollar stablecoin for Samsung's payment service and a US launch expected before the end of October. Coinbase has also finalized its integration of Deribit, which it agreed to acquire last year for about $2.9 billion, and plans to merge its US and international derivatives markets into one liquidity pool.
What this means for bank and fintech watchers
For Gulf and global banks weighing a digital asset offer, the practical question is build, buy or partner, and each choice shifts concentration risk. Buying from one provider concentrates custody and settlement dependency; building raises capital and compliance cost. Watch for named bank clients, disclosed fees, and whether announced entrants such as Deutsche Bank source infrastructure externally or in-house. Until those appear, treat the demand story as reported by Coinbase rather than verified by on-chain or filing data.
- Is Coinbase competing with banks or serving them?
- Both, according to its own account. Liz Martin of Coinbase Institutional says banks are launching digital asset services and Coinbase is their infrastructure provider, while Coinbase also runs its own trading and prime offerings.
- Which banks already offer crypto custody?
- PYMNTS, summarizing the Bloomberg interview, names BNY, DBS Bank and U.S. Bank as existing providers. Deutsche Bank has announced plans to enter the space.
- What did Coinbase say about conflicts of interest?
- Martin said there is no conflict in Coinbase trading and supplying infrastructure at once, arguing that more traditional-finance participation helps both sides. That is a company assertion, not a finding.