Cryptocurrency Status Upgrade: Global Banks from "Threat" to "Must-Compete Area"

Coinbase CEO Brian Armstrong recently shared a noteworthy observation at the Davos Forum — an executive from one of the world’s top ten banks confided in him that cryptocurrencies have become the institution’s “number one strategic priority,” and are even regarded as a core issue related to survival. This shift reflects a profound transformation in the global financial ecosystem, where cryptocurrencies are no longer a fringe topic but a strategic reality that mainstream financial institutions must face.

The Tokenization Wave Reshaping Financial Infrastructure

During the forum, tokenized assets and stablecoins emerged as the most discussed trends. Armstrong pointed out that the scope of tokenization has far exceeded stablecoins themselves, extending into stocks, credit, and various financial products. This technological revolution is breaking traditional intermediary models — global asset management firms and fintech companies will gradually gain the ability to bypass traditional banks and directly offer tokenized securities and real-time transfer services to clients.

Currently, about 4 billion adults worldwide lack access to high-quality investment channels. Tokenization technology is seen as a key to bridging this huge gap. Armstrong predicts significant breakthroughs in this field by 2026, which will directly threaten the monopoly of traditional banks over financial services. For banks relying on traditional payment systems, cryptocurrencies and tokenization are both challenges and opportunities for necessary transformation.

Regulatory Environment Evolves Favorably

On the policy front, the US attitude towards cryptocurrencies is clearly shifting. Armstrong described the Trump administration as “the most crypto-friendly government in the world,” and specifically mentioned initiatives like the CLARITY Act, which aims to establish clear regulatory frameworks for digital assets.

He emphasized that promoting the regulation of cryptocurrencies is crucial for maintaining America’s global competitiveness, especially amid China’s heavy investments in stablecoin infrastructure. Clear regulatory rules can protect consumers and provide certainty for businesses and developers, thereby accelerating the maturity and adoption of the crypto ecosystem. This policy shift has created unprecedented conditions for financial institutions to deploy in the crypto space.

Deep Integration of AI and Cryptocurrencies

Armstrong further pointed out that artificial intelligence and cryptocurrencies have become the two most prominent technological fields at the Davos Forum. Although AI’s popularity in capital markets once overshadowed that of cryptocurrencies, these two technologies are actually closely related and mutually empowering.

Of particular interest is AI-driven payment innovation. Armstrong predicts that AI agents will increasingly use stablecoins for transactions, completely bypassing traditional identity verification and banking restrictions. The infrastructure for this new payment model has already been established and is in rapid growth, with accelerated adoption expected by 2026.

Cryptocurrencies: From Experiment to Strategic Necessity

Armstrong’s observations at the forum send a clear signal: cryptocurrencies have evolved from once being fringe experiments to becoming a strategic focus for global mainstream financial institutions. Driven by the tokenization wave, regulatory support, and AI innovation, cryptocurrencies are reshaping global financial infrastructure. The banking industry is facing unprecedented transformation pressure. Those financial institutions that actively embrace this change and flexibly utilize crypto technologies are likely to gain the upper hand in the next round of competition.