Coinbase Rebuts Stablecoin Fears, Launches Base Privacy
Coinbase policy chief Faryar Shirzad has rejected claims that stablecoins are eroding US bank deposits. He notes two-thirds of stablecoin transactions occur on blockchain and DeFi platforms outside traditional banks. Most stablecoin demand comes from non-US users hedging currency risk in volatile economies. Shirzad likened fears over stablecoins to past money market fund concerns and said community bank clients rarely overlap with stablecoin holders. These comments coincide with Coinbase’s rollout of private transactions on its Base network. By clarifying stablecoin usage, Coinbase aims to reassure regulators and financial institutions that stablecoins support new blockchain finance rather than threaten bank liquidity.
Bullish
This news is bullish for stablecoins and DeFi because it reduces regulatory uncertainty and underscores growing adoption outside traditional banks. In the short term, traders may gain confidence in stablecoin liquidity as Coinbase clarifies usage patterns and addresses deposit fears. Over the long term, easing regulatory concerns and introducing Base private transactions could drive broader stablecoin integration and increased demand in blockchain finance.