Wall Street is dismissing Coinbase’s growth as a misunderstanding by entrenched incumbents trapped in the “Innovator’s Dilemma,” rejecting what it sees as disruptive innovation. However, Coinbase has completed its transformation into a unique financial infrastructure company.
According to U.Today on February 19 (local time), Coinbase CEO Brian Armstrong made his position clear during a Q&A session with analysts regarding why the company is undervalued on Wall Street. Armstrong pointed out that the traditional financial industry is reluctant to accept the structural changes brought about by cryptocurrency. He compared the situation to taxi companies denying Uber or the saying, “Don’t ask a carriage maker what he thinks about automobiles,” emphasizing that incumbents resisting innovators is a recurring theme in business history.
Armstrong provided concrete figures to show that forward-thinking traditional financial institutions are already moving into the crypto market. Currently, five Global Systemically Important Banks (GSIBs) have begun partnerships with Coinbase. Additionally, about 50% of major financial institutions are actively embracing virtual assets, including Bitcoin (BTC), while the remaining half are falling behind. Armstrong warned that those who refuse to adapt to market changes will ultimately be eliminated from the competition.
Contrary to Wall Street’s skepticism, Coinbase’s performance growth has been on a steep upward trajectory. In 2025 alone, the company’s trading market share doubled. Assets on the platform have tripled over the past three years, and 12 products now generate more than $100 million in annualized revenue. In particular, USDC and the paid membership service Coinbase One reached all-time highs, demonstrating successful diversification of its revenue structure.
Armstrong also addressed investor confusion stemming from accounting methods. Under Generally Accepted Accounting Principles (GAAP), net income includes unrealized gains and losses, which can lead to significant volatility. However, based on adjusted net income, Coinbase recorded a profit last quarter despite a market downturn. Armstrong advised investors to focus less on sensational media headlines and more on whether the company is delivering on its promises.
Coinbase has evolved beyond a simple exchange into an infrastructure company upgrading the global financial system. By moving away from a model dependent on trading fees and building a diverse product portfolio, it has strengthened its business resilience. Armstrong predicted that all assets will eventually move on-chain and affirmed that Coinbase will become the universal exchange leading that transformation.
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