THE BANKS WILL HOLD BITCOIN!

Institutional Crypto Adoption & Strategy - Coinbase's institutional business is poised to surpass its consumer business due to larger capital pools [1] - Bitcoin serves as a gateway for institutional investors, leading to the adoption of ETH and other crypto products [2] - Institutions are progressively engaging with crypto, starting with spot trading, then futures and financing, and finally options [2] - The passing of the Genius Act has acted as a catalyst, prompting traditional financial institutions to explore crypto's disruptive potential [2] Tokenization & Digital Asset Treasuries (DATs) - Tokenization is seen as a bridge between the crypto-native and traditional finance worlds, with asset managers seeking new distribution paths through it [3][4] - Digital Asset Treasuries (DATs) are emerging as a new avenue for capital to enter the crypto space, with approximately 260 DATs representing $15 billion of new capital [2][41] - Coinbase is providing custody, trade execution, and financing services to DATs, with Coinbase Asset Management (CBAM) offering outsourced asset management [44][45] Regulatory Landscape & Future Outlook - Regulatory clarity in the US, particularly the Genius Act, is a significant catalyst for institutional crypto adoption, reversing the previous advantage held by other countries [62][63] - The US is leapfrogging the rest of the world in crypto innovation due to regulatory developments [62] - Despite progress, the crypto industry must avoid repeating past mistakes with bad actors to maintain regulatory favor and continue growth [70][71] - There is a potential tipping point where over 50% of traditional financial institutions' revenue will come from crypto-related products [24]