The Securities and Exchange Commission has introduced a rule that may allow registered financial advisors to keep Bitcoin on behalf of their clients. The change is expected to increase the pool of retail investors who can gain exposure to the cryptocurrency through traditional wealth-management channels. Coinbase’s first chief business officer, Shan Aggarwal, says the firm is already positioned to serve that emerging demand, leveraging its custody platform that holds the majority of assets in the newly launched Bitcoin exchange-traded funds.
Institutional Demand From Big Banks
BlackRock, JPMorgan and other large financial institutions have signaled a desire for robust Bitcoin infrastructure. According to Aggarwal, these firms are seeking reliable custodial services, on-chain settlement capabilities and tools that integrate with their existing payment and trading systems. Coinbase’s existing custodial operations, combined with its experience handling the Bitcoin ETFs, make it a natural partner for banks looking to add crypto to their balance sheets.
New Revenue Streams for Coinbase
Beyond custody, Coinbase is pursuing multiple avenues to deepen its role in the Bitcoin ecosystem. The company is developing a “One Card” product that aims to convert everyday spending into Bitcoin ownership, potentially turning regular consumers into holders. It also sees a trillion-dollar opportunity in stablecoins, working with partners such as Citi to enable merchant payments using digital dollars. Additionally, Coinbase has entered the collectibles market and is testing reward programs that dispense Bitcoin for everyday activities.
Lightning Network and Future Payments
Aggarwal highlighted growing usage of the Lightning Network among Coinbase customers, indicating that fast, low-cost Bitcoin payments are gaining traction. He speculated that artificial-intelligence agents could soon choose between Bitcoin and stablecoins when settling transactions, suggesting a broader role for crypto in automated commerce.
Why it matters
The convergence of regulatory clarity, institutional appetite and Coinbase’s expanding product suite could accelerate mainstream adoption of Bitcoin. By acting as the backbone for both large banks and individual advisors, Coinbase may shape how the next wave of investors interact with digital assets, potentially influencing market liquidity, price dynamics and the broader perception of crypto as a legitimate financial instrument.
