# Coinbase says stablecoin payments and new entrants are driving a second institutional wave

By Riza Dagoc

Canonical URL: https://www.tokenpost.com/news/investing/41220
Published: 2026-10-26T18:40:36.000Z
Updated: 2026-10-26T18:40:36.000Z
Section: Investing

> Coinbase Institutional's Brett Tashpaul says stablecoin payments and new entrants are driving a second institutional wave, with seven major banks already using its infrastructure.

Stablecoin payments and new institutional entrants are driving a second wave of crypto adoption after the initial focus on Bitcoin investment, according to Brett Tashpaul, co-CEO of Coinbase Institutional.

Institutional demand is expanding from buying Bitcoin to using stablecoins in business payments. Tashpaul said new market participants represent a larger opportunity than increased allocations from investors who already hold Bitcoin.

In an October 26 interview with Bitcoin Magazine, Tashpaul said he was seeing a second wave of institutional capital, with the same infrastructure supporting both Bitcoin purchases and stablecoin payments.

Seven of the world's largest global systemically important banks use Coinbase's infrastructure, he said. Many had considered crypto adoption for several years. While ETFs provided an initial route for institutional capital into Bitcoin, he described payments as the main driver of the next phase.

Connecting bank accounts to stablecoins is central to that expansion. Tashpaul said transfers previously took four or five days from end to end, despite rapid movement on the blockchain, because funds still had to enter and leave the banking system. Through Coinbase's work with Citibank, he said, cash can now move instantly into USDC, travel over a blockchain in one second and reach a recipient's corporate bank account in the UK and UAE, where the service has launched.

Tashpaul said the prominence of dollar-denominated stablecoins demonstrates retail demand for dollars and points to changes in international payments. Businesses need to keep moving money amid disruptions to global supply chains and banking, he said, putting pressure on banks' established international networks as faster and cheaper transfer technology becomes available.

Stablecoins nevertheless remain small relative to global payment volumes, he said. He expects adoption to advance quickly this year among US payment service providers handling activities such as payroll and e-commerce, then spread into banking over the next few years. AI-driven purchasing and payments are emerging alongside that institutional adoption, he added.

Asked whether institutional clients had stopped treating Bitcoin as leveraged exposure to technology stocks, Tashpaul answered, “Not quite yet.” He cited slowing growth, signs of inflation, disruption to global trade and precious metals trading near record highs as a supportive backdrop, while describing Bitcoin's appreciation relative to precious metals as somewhat disappointing.

Options access is another part of Coinbase's institutional expansion. Tashpaul said Deribit had maintained an 85% market share through bull and bear markets. Following its acquisition and integration, Coinbase is working to connect US clients with offshore options liquidity in a manner consistent with regulatory requirements. He said that connection would support demand from US macro funds for basis and volatility trades.

Tashpaul identified new entrants as the main source of the next institutional wave. Venture funds, macro funds and private clients were followed by ETFs, which opened access through US registered investment advisers, he said. Coinbase is now making its infrastructure for buying, custody, selling, financing and staking available to other businesses, allowing their clients to access crypto through existing platforms and supporting broader institutional participation.