Brian Armstrong, CEO of Coinbase, the leading U.S. crypto exchange, recently detailed his progressive vision to integrate the entire startup life cycle on the blockchain: from inception to fundraising and, eventually, public trading. His ambitious plan, discussed on the TBPN podcast, illustrates the increasing relevance and potential of blockchain technology.
The Onchain Lifecycle
Armstrong passionately envisions a startup’s entire life cycle being enacted on the blockchain. He explained the potential for founders to incorporate their startups, raise investments, and receive immediate capital predominantly through USDC – a leading digital dollar stablecoin. The end game, as Armstrong sees it, is the facilitation of public trading through tokenized equity.
He asserts, “You can imagine this whole life cycle coming onchain,” calling attention to how this move could potentially boost the number of businesses that raise capital and take their first steps onto the global stage.
Replacing Traditional Infrastructure
In Armstrong’s view, startups will no longer rely on banks or lawyers to handle international transfers. Instead, funding can be instantly raised via onchain smart contracts. The moment the capital is generated, entrepreneurs can start bringing in revenue, accept crypto payments, secure financing, and even drive their companies public directly onchain. This is a potential game-changer, cutting down the traditional time and resources spent on middlemen and regulatory processes.
Fundraising Reimagined
The fundraising process as we know it, according to Armstrong, is outdated. He suggested onchain fundraising as a solution to make capital formation a more streamlined, fair, and transparent process. He notably spoke about leveraging Coinbase’s recent acquisition of the fundraising platform, Echo, under this initiative.
As part of the Coinbase family, Echo has already supported more than 200 projects, raising over $200 million. Armstrong envisions Echo continuing to operate independently, but gradually integrating with Coinbase operations, granting founders access to a whopping half-trillion dollars handled by Coinbase and reaching a global world of investors.
Work in the Regulatory Space
Coinbase has been actively engaging with U.S. regulators to enable broader and smoother access to onchain fundraising. Armstrong asserted that the current accreditation process for investors leaves many individuals out of early-stage opportunities. “In many ways the accredited investor rules are kind of unfair,” said Armstrong, expressing the hope they could strike “the right balance of consumer protection and making these available to retail.”
Coinbase’s Rising Prospects
Last week, banking giant JPMorgan Chase upgraded Coinbase to Overweight, indicating significant potential for growth from its Base network and revised USDC rewards strategy. Analysts estimate that a potential Base Token launch could create a market opportunity worth $12 billion to $34 billion, with Coinbase’s share valued between $4 billion and $12 billion. This highlights the growing industry recognition and confidence in Coinbase’s innovative strategies.
Conclusion
Armstrong’s vision for an onchain startup life cycle demonstrates the bold, forward-thinking strategies that are driving the adoption of blockchain and crypto to new heights—as well as the regulatory challenges that must be addressed. As developments unfold, Coinbase is set to play a critical role in transforming traditional economic processes for the emerging digital economy.
