Traditional Financial Institutions Increasingly Embracing Digital Assets, Says Coinbase VP
With digital assets gaining support from both sides of the political spectrum, conversations between Coinbase and traditional financial institutions are on the rise, according to Shan Aggarwal, the exchange’s vice president of corporate and business development.
In a recent interview with Decrypt at Messari Mainnet, Aggarwal noted that discussions with major financial firms have shifted in the past six to nine months, especially as the cryptocurrency issue in the U.S. has become more bipartisan. This shift could potentially bring more traditional financial players into the Web3 space, driving wider adoption of digital assets.
Aggarwal mentioned that while onboarding new users onto the blockchain is still challenging due to complicated on-ramps, the involvement of traditional financial institutions in the crypto space could help simplify the process for Main Street users. This, in turn, could lead to increased adoption of digital currencies.
He emphasized the importance of having a broader base of banking partners working with crypto companies to streamline money flow into the ecosystem, which would reduce the barriers for users to engage with on-chain applications.
The growing bipartisan support for digital assets was evident when more than 70 House Democrats voted in favor of the Financial Innovation and Technology for the 21st Century Act (FIT21), a bill aimed at establishing a regulatory framework for digital assets in the U.S. Additionally, a bipartisan group of U.S. senators passed a resolution to rescind a SEC policy that had negative implications for banks offering crypto services.
As support for digital assets continues to grow across party lines, political action committee Fairshake has played a significant role by distributing over $130 million to politicians ahead of the U.S. general election. Coinbase, along with Ripple and VC firm Andreessen Horowitz, are among Fairshake’s major backers, and the super PAC’s recent endorsements for House and Senate races were evenly split between both parties.
Aggarwal highlighted the shift in perception of crypto as a partisan issue, stating that it is now seen as a bipartisan matter. He described it as a “purple issue” rather than a blue or red one, emphasizing the broad appeal of digital assets.
Additional reporting by Sander Lutz
Edited by Andrew Hayward