American cryptocurrency exchange Coinbase has a new milestone to celebrate as it outperforms the 21st largest bank in the United States.
NYCB Suffers Exposure From Signature Bank
The Brian Armstrong-led firm hit $420 billion in assets under management (AUM). This value places the world’s third-largest centralized exchange (CEX) by trading volume above New York Community Bancorp (NYCB).
For context, NYCB reportedly has an AUM of $112.9 billion, two times less than the current AUM stated by Coinbase.
The financial institution claimed that it suffered a loss of $260 million quarterly in Q4 2023. This happened after it purchased Signature Bank, one of the crypto-friendly banks that collapsed in 2023.
Coinbase is Linked to a Bank and Brokerage
Coinbase posted a net profit of $273 million in the same quarter. This was the first positive income quarter the exchange recorded since Q4 2021. Coinbase’s latest win demonstrates how much the cryptocurrency sector is growing. Speaking of the new development, Armstrong noted that;
“If you think of Coinbase like a bank, we now hold about $0.42T in assets for our customers, which would make us the 21st largest bank in the US by total assets, and growing.”
He said that if Coinbase were regarded as a brokerage, “we’d be the 8th largest brokerage today by AUM.”
Coinbase Receives FCA Approval in the UK
This comes only a few days after Coinbase became the most significant operating company in the United Kingdom.
Precisely, it gained approval from the Financial Conduct Authority (FCA) to offer crypto services in the UK, and market experts count it as no small feat. Less than 15% of applicants for the same approval have received a green light.
According to Keith Grose, Coinbase’s UK CEO, securing a spot has been ongoing for six months.
This is the exchange’s opportunity to launch new regional products and services. As a result, Coinbase will release crypto and cash services to investors and traders in the U.K. Market experts have lauded the move, noting that getting approval into the FCA register is not a small feat. Historically, only less than 15% of applicants have been successful.
Going forward, Coinbase can offer crypto and cash services to investors and traders in the U.K.
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