Brian Armstrong discussed several areas where he believes the financial system still needs major modernization.
Coinbase CEO Brian Armstrong said the financial system still requires major upgrades, as he emphasized that significant technological innovation and policy work will be needed to achieve them.
In a post on X, Armstrong flagged several areas where he believes the industry must evolve, including the tokenization of real-world assets (RWA), 24/7 global trading, stablecoin-powered payments, AI-driven financial services, and innovation-friendly regulation.
Shift Toward Tokenized Real-World Assets
Armstrong stated that tokenizing assets such as real estate, stocks, bonds, and funds on blockchain networks enables instant settlement, fractional ownership, and broader distribution. Financial institutions are increasingly exploring tokenization as a way to modernize settlement processes, asset ownership, and investor access while remaining compliant with existing legal and financial frameworks.
The IMF said in an April 2 note that tokenization represents a fundamental reconfiguration of financial architecture. Industry forecasts also estimate that the RWA tokenization market could reach $5 trillion by 2030, driven largely by tokenized treasuries.
Chainlink’s Sergey Nazarov previously said that the migration of real-world assets onto blockchain networks is continuing regardless of movements in crypto prices. He also pointed to the growth of on-chain perpetual markets tied to commodities such as silver, and added that these markets are becoming increasingly competitive with traditional financial systems.
Armstrong also called for 24/7 global trading with pooled liquidity, improved leverage, and greater capital efficiency. In terms of payments, he said stablecoins could support near-instant and low-cost global transfers, including agentic payments.
AI-Powered Finance
The Coinbase CEO further highlighted the role of AI-powered systems in improving risk management, credit, compliance, fraud prevention, and financial advice while expanding access to capital. Interestingly, Coinbase has already slashed around 14% of its workforce as it moved toward becoming a more AI-focused company. Armstrong had earlier said AI tools were allowing smaller teams to complete work faster, automate tasks, and operate more efficiently across the company.
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On regulation, the exec argued for a move away from one-size-fits-all frameworks toward risk-based rules that encourage innovation and competition. He also advocated for open protocols and self-custodial wallets to expand financial access to anyone with a smartphone.
Armstrong additionally pointed to easier capital formation for startups and described “sound money” as a refuge from inflation when discipline weakens in fiat currencies.
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