Coinbase targets 4,000 U.S. community banks ahead of landmark crypto vote

Coinbase (NASDAQ: COIN) is going after a much bigger piece of America’s banking market through a new deal with payments company Moov.

The crypto exchange wants smaller banks and credit unions to offer stablecoin services without sending customers somewhere else.

The deal lets these banks take stablecoins, move money, settle payments and keep funds available at any time, day or night. It comes just days before the U.S. Senate is due to hold an early vote on the Clarity Act, one of the biggest crypto bills still sitting in Washington.

It has been pending for months now, and yet banks and crypto companies continue to bicker about the handling of digital dollars. Coinbase and other crypto companies are urging senators to move the bill forward.

The banking lobby is resisting it because of reward payments in the form of stable coins or other crypto assets. There is a concern that customers may begin withdrawing their money from traditional bank accounts to claim such rewards.

Coinbase puts stablecoin services inside the banking systems smaller lenders already use

Coinbase will be responsible for providing the crypto platform technology to support the service, while Moov will connect the same to the existing payment systems used by banks. In this case, a bank that opts for this service will not have to develop an entirely new crypto system.

Moov already works with more than 1,000 community banks and credit unions across the United States. Its network already supports card issuing, merchant payments and real-time money transfers. Coinbase is now adding stablecoin services to that same setup for their own customers.

Ryan VanGrack, vice chair and head of corporate affairs at Coinbase, said smaller financial institutions have watched their customers use crypto for years.

“Community banks and credit unions have witnessed their customers use digital assets for years,” Ryan said. “Through our partnership with Moov, Coinbase is delivering the regulated infrastructure they need to offer these services directly — embedded right into their existing systems.”

The Independent Community Bankers of America has opposed the latest Clarity Act language alongside other banking organizations. Its concern centers on stablecoin rewards and the possibility that those products could pull deposits away from local lenders.

Wade Arnold, co-founder and CEO of Moov, said business clients are already getting requests involving stablecoins.

“Business customers of community institutions are already being asked to accept stablecoins, and today they go outside their institution to do it,” Wade said.

He added that Moov wants those transactions handled through the customer’s main bank instead.

“We built this so the answer comes from their primary FI instead. Merchants need acceptance and disbursement now. What comes next is bigger: funding that doesn’t stop for weekends or holidays, because the rail doesn’t close. Institutions that add this now will be positioned for both,” he said.

Senators decide whether the Clarity Act gets enough votes to keep moving

The political math is still messy. The Clarity Act needs at least 60 Senate votes to clear its next procedural hurdle, and there is still no guarantee that supporters have enough lawmakers on board.

Democrats have raised objections to the bill’s proposed ethics rules. They argue the current wording does not go far enough to stop government officials from making money through crypto holdings or related business interests. Some Republicans have a different concern. They are worried about what the legislation could mean for community banks if stablecoin rewards make traditional deposits less attractive.

Jill Castilla, chairman, president and CEO of Oklahoma-based Citizens Bank of Edmond, said smaller companies using the bank are focused on payment costs and settlement speed.

The bank’s “small business customers are looking for ways to lower interchange costs and get paid faster,” Jill said.

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