Brian Armstrong, CEO and founder of Coinbase, the largest exchange in the US. He is very often seen as one of the most influential people in the cryptocurrency industry. Under his leadership, the Coinbase exchange adopted a strategy to fight the SEC that has become a model for other cryptocurrency exchanges. Armstrong is often seen as a voice representing the interests of cryptocurrency exchanges.
He is also credited with creating the first ever US cryptocurrency exchange, Coinbase. He plays a huge role in the mass adoption of cryptocurrencies and blockchain technology in financial services. Brian actively promotes the pro-crypto-currency environment by supporting the regulatory sector in the US, although this has not always gone smoothly.
Coinbase under Armstrong’s leadership
Coinbase, founded in 2012, is a centralised exchange for digital assets (CEX), one of the most popular platforms for cryptocurrency trading. Under Armstrong’s leadership, the exchange has expanded its cryptocurrency services, introducing Coinbase Wallet and Coinbase Pro, a platform for more experienced traders, among others. Coinbase was also the first cryptocurrency exchange in the US to debut on the NASDAQ exchange, which took place in 2021.
More recently, Coinbase has continued its growth and innovation in the cryptocurrency sector, introducing new technologies such as Lightning Network (LN) integration. Armstrong announced in September 2023 that Coinbase plans to integrate the LN to enable users to transact faster and cheaper in Bitcoin. This is a significant development, given the exchange’s previous sceptical approach to the technology.
AI development at Coinbase
In September 2024, Brian Armstrong announced that Coinbase had conducted the first cryptocurrency transaction that was fully managed by AI agents. In this transaction, two AI bots exchanged tokens with each other, marking a first of its kind on the road to the wider use of AI in finance. Armstrong noted that AI agents cannot obtain bank accounts, but can use cryptocurrency wallets, allowing them to participate in the economy in a more independent way. This event demonstrates Coinbase’s commitment to developing new technologies that can benefit the entire financial sector.
Coinbase financial results
The fourth quarter of 2023 saw positive financial results for Coinbase, which was the first net profit since the fourth quarter of 2021. The company posted a net profit of US$273 million and net revenue of US$905 million, an increase of 45.2 per cent compared to the previous quarter. The increase was driven by increased transaction activity from both retail and institutional customers. These results pushed Coinbase shares up 12.7 per cent, and Armstrong said he hoped the company would remain at the forefront of the cryptocurrency market regulation conversation.
Brian Armstrong’s early life
Armstrong was born on 25 January 1983 in California, the son of engineers with a strict mind. He followed in his parents’ footsteps, studying computer science and economics at Rice University. He graduated with a bachelor’s degree in both fields and earned a master’s degree in computer science. While studying at Rice, he had his first internship at IBM and then worked for Deloitte & Touche in the risk management department.
In 2012, Armstrong co-founded Coinbase with Fred Ehrsam, which proved to be a watershed moment for both him and the cryptocurrency market as a whole.
Brian Armstrong’s views
Armstrong has repeatedly stated that he wants Coinbase to be a global, open financial system that drives innovation and freedom. He is a proponent of regulating cryptocurrencies and advocates for regulatory clarity that would bring balance to the relationship with regulators. However, the relationship between Coinbase and the SEC is not a friendly one – in 2023, the SEC sued the exchange for alleged violations of securities laws. Despite these challenges, Armstrong has shown his determination to fight for cryptocurrencies.
How did Coinbase come into being?
Coinbase’s beginnings were not easy. Brian Armstrong submitted his idea to the Y Combinator incubator, where he was given an ultimatum: he had three days to find a co-founder. Thanks to an ad on Hacker News, he met Fred Ehrsam, a Goldman Sachs trader, and together they secured funding from Y Combinator of US$150,000. Thus began the adventure with Coinbase, whose first headquarters was in a flat.
In May 2013, Coinbase raised US$5 million in a Series A investment, and later another US$25 million from Andreessen Horowitz and other investors. The exchange currently has 76 investors and has raised a total of US$498.7 million in funding. Armstrong owns a 19% stake in Coinbase, and according to Forbes reports, its net worth was approximately US$2.4 billion in 2022.
Summary
Brian Armstrong has played a key role in the development of the cryptocurrency market through his actions and leadership at Coinbase. The introduction of the Lightning Network and experiments with AI show that Armstrong continues to push for innovations that can make cryptocurrencies more accessible and useful. Despite regulatory challenges, Armstrong continues to fight for the mass adoption of cryptocurrencies and the building of a new global financial system.
