Major US banks are showing heightened interest in Bitcoin exposure, according to Shan Aggarwal, Chief Business Officer at Coinbase. Aggarwal reported that recent regulatory changes by the Securities and Exchange Commission (SEC) could make it easier for financial advisors to custody Bitcoin on behalf of their clients, opening new avenues for institutional participation.
SEC rules and advisor opportunity
The SEC’s clarification of advisor rules is seen as a catalyst for traditional wealth managers to begin offering Bitcoin services to clients. Aggarwal explained that these changes would not only make it more straightforward for advisors to include Bitcoin in client portfolios but would also significantly broaden overall market access.
Coinbase, a leading US-based cryptocurrency exchange, currently serves as the custodian for the majority of Bitcoin Exchange-Traded Funds (ETFs) available in the market. The company continues to focus on enabling secure, regulated access for institutional clients seeking crypto exposure.
Growing institutional demand
Aggarwal stated that large financial institutions such as BlackRock and JPMorgan are actively seeking robust Bitcoin infrastructure solutions. He emphasized the growing demand from banks and asset managers for reliable custody and trading services as they expand their cryptocurrency offerings.
He pointed out that, as regulatory clarity improves, asset managers and advisors are expected to allocate larger portions of client assets to Bitcoin, supported by infrastructures provided by firms like Coinbase.
He believes the advisor rule is set to “expand the pie for Bitcoin access,” as Coinbase delivers the critical infrastructure needed for institutions and clients.
As traditional banks deepen their involvement in digital assets, the demand for compliant and secure frameworks is becoming a priority for the industry.
Product expansion and stablecoin focus
Coinbase has recently been exploring new opportunities in the fast-growing stablecoin sector. Aggarwal said the company sees a “trillion-dollar opportunity” in the use of stablecoins for payments and settlement. Partnerships with financial giants like Citi aim to bring stablecoin payment options to merchants and businesses worldwide.
The company is also introducing consumer-oriented products, such as the Coinbase One Card, designed to encourage everyday spending with crypto rewards, and expanding into collectibles and routine Bitcoin incentives.
In addition to Bitcoin ETFs and stablecoins, Coinbase continues to assist clients with advanced blockchain tools, including integrating the Bitcoin Lightning Network to facilitate fast and affordable transactions.
Looking forward, Aggarwal suggested that AI-driven financial agents may use both Bitcoin and stablecoins for automated payments and settlements in the evolving digital economy.
Mini dictionary: Coinbase is a publicly traded cryptocurrency exchange headquartered in the United States, known for its regulatory compliance and custody solutions targeting both retail and institutional crypto investors.
Broader adoption outlook
Aggarwal predicted that the next wave of Bitcoin adoption is likely to be driven by integration with mainstream financial services, use in everyday transactions, and continued development of digital asset products for both individual and institutional investors.
He acknowledged that regulatory developments will remain a decisive factor for future adoption, as the industry seeks consistent and clear policies allowing more participants to enter the market securely.
Large banks are “increasing BTC exposure” as the regulatory landscape evolves, with Coinbase positioning itself as the infrastructure backbone for the growing institutional segment.
As more traditional finance actors enter the digital asset space, the role of secure custodians like Coinbase is expected to become even more significant in shaping the industry’s infrastructure.
