Coinbase CEO Brian Armstrong said that Coinbase is working to attract institutional money to the crypto market. Armstrong voiced his views in a new interview. The CEO pointed out that some of these institutional investors have allocated a portion of their portfolios to digital assets. He also added that he expects the aforementioned investors to concentrate on two altcoin projects in the future. Armstrong noted:
“There are some big institutional investors out there who are investing in crypto. We are entering into various partnerships, as we did with BlackRock, the world’s largest asset manager, to allow more of this money to flow.”
Coinbase CEO: “Institutional investors are waiting for this development”
Continuing his words, Coinbase CEO Armstrong emphasizes the importance of regulatory clarity. According to him, the need for regulatory clarity in the cryptocurrency space is becoming increasingly important. The expert says that once these regulatory frameworks become clear, more institutional investors will invest in altcoin assets. Brian Armstrong shared the following on the subject:
“For institutional money to enter the crypto market, regulatory clarity must first be established. When I talk to institutional investors, they always suggest this. But the good news is that we’re finally seeing regulatory clarity emerge. If you want, we can exchange ideas about what it is. But I think what regulatory clarity will bring is more important than what the concept is. In my view, it will attract more institutional money in the next year or two.”
“Cryptocurrencies must solve scalability issues”
In addition to regulatory clarity, the CEO of Coinbase also raised some issues of cryptocurrencies. According to Armstrong, most altcoin assets lag behind traditional tools in scalability. Most digital assets, especially Bitcoin and Ethereum, lag behind PayPal and Visa. However, Armstrong likens it to the Internet’s initial use of dial-up, but gradually accelerating to broadband. According to him, cryptocurrencies will have better scalability over time:
“When it was first released as a Blockchain, Bitcoin could only process seven transactions per second. Ethereum was doing 25 transactions per second. For comparison, PayPal currently processes an average of 500 transactions per second. Visa processes approximately 4,000 transactions. So we need a few big improvements to get closer to the Visa level.”
“Corporate money will pour into these 2 altcoin projects”
However, the Coinbase executive praises cryptocurrencies like Ethereum and Solana. According to him, the Ethereum Merge upgrade was a huge success. Such developments show that the crypto world is working towards enhanced scalability. In addition, the CEO is optimistic about Solana, which has been on the agenda with the high speeds it has offered since its launch. According to him, Solana, Ethereum and some layer-2 solutions will attract institutional money in the future:
“Merge has been a huge technical success. However, I think the future upgrades they will release will further increase scalability through sharding and similar improvements. Among other altcoins, Solana is also really making solid strides in scalability. I think we’re seeing the Lightning Network too, all these layer-2 networks. There is a really good focus on the scalability of blockchains right now.”
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