What can we say about Coinbase's development in Europe?
That's a very broad question, but I'd say we're extremely committed to the region. We're really excited about serving European customers. There was a big push about two, three years ago for internationalisation at Coinbase. It came from a realisation by Brian Armstrong at the time: if you want to increase economic freedom in the world, the world is not limited to the United States. You have to open up internationally. So we've made significant investments, hired a number of senior executives, including myself, to strengthen our local presence in Europe.
How many people work for Coinbase in Europe?
I can't give you the exact figures, because we're a publicly listed company so I have to be cautious. But let's say it's a three-figure figure, and it's grown a lot in the last two years.
The majority is in Ireland?
In reality, we have a presence in several European countries. It's funny you should mention that, because London was our first base. For an American company, linguistic proximity plays a role. London was, before the Brexit, a key place for finance. Then, after the Brexit, we had to find a European 'home'. Ireland seemed a natural choice: English is spoken there and it offers a favourable environment. So we moved a large part of our business to Ireland and strengthened our local presence.
But since then, our strategy has evolved: we now build from markets for markets. For example, we have obtained a licence from the BaFin in Germany in 2021. We set up a local team in Germany, then moved to France just over a year ago. And since then, we have continued to evaluate opportunities market by market in Europe.
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What are your main markets in Europe today?
It's pretty standard. We are the market leader in the UK: Coinbase is the biggest crypto player there. Then we hold leading positions in all the countries where we are registered. We have registrations in France, the Netherlands, Italy, Spain, and we hold a licence in Germany.
"Paris and France have a very strong and dynamic ecosystem, almost without equal" Which European countries do you think are showing the most interest in crypto from the retail user side?
Ah, you're testing my data knowledge! (laughs) To be totally accurate, I'd have to review the latest statistics, which I haven't done for about three months. But I can give you an answer based on my feelings. Paris and France have a very strong and dynamic ecosystem, almost without equal. Berlin, too, is an incredibly thriving ecosystem. In fact, the Ethereum Foundation has its largest global office in Berlin, in the Kreuzberg district.
London, of course, also has a lot going for it, not least because of its talent pool in fintech. Many fintech professionals have moved into crypto, and the UK government is encouraging innovation and investment. So there you have it: Paris, Berlin and London are, in my view, extremely solid ecosystems, even if that's not a purely 'data' answer.
My question concerned individual users, but for institutional clients, which country is the most dynamic? Is it France?
You know what? These trends are quite similar to those in traditional finance. If we'd been having this conversation ten years ago, I'd have told you without hesitation: London. But since the Brexit, France has regained a lot of ground. It has invested enormously in its financial and institutional ecosystem, and it shows. So yes, for me, France has become a major player.
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How would you describe your relationship with French banks? Is it easy to talk to them?
We talk to banks all over the world. If you go back ten years, simply opening a bank account for a crypto company was an extremely complicated task. Gradually, new banks, often start-ups, have become more open to crypto businesses. Today, even large institutional banks are taking an active interest. They see crypto not only as potential customers, but also as a sector they can integrate into their own offerings.
This movement began as early as 2016-2017, but has strengthened recently, particularly in the United States with the arrival of a new, more open administration. We can now see giants like Bank of America considering issuing a stablecoin. There is clearly renewed momentum.
>> Paul Brody (EY): "All banks will launch their own stablecoin"
"We have been chosen as custodian for BlackRock's new ETP launched in Europe" Do you sell custody services to traditional banks for their crypto activities?
Yes, absolutely. In fact, as you probably know, we are the reference custodian for 9 of the 11 Bitcoin spot ETFs in the United States. And recently, about a week ago, we were chosen as the custodian for BlackRock's new ETP launched in Europe. This trend is likely to accelerate now that the US giants are also looking to gain a foothold in Europe.
What will your strategy be in the coming months: developing partnerships with crypto influencers or adopting a more traditional, "TradFi" marketing approach?
At Coinbase, our mission is to increase economic freedom around the world. Historically, we started with individuals, then moved to institutional from 2016-2017. And more recently, you've seen initiatives like Base, the Coinbase Developer Program, Coinbase Wallet... We're now trying to build a real ecosystem around Coinbase.
So, to answer clearly: it won't be a choice between one or the other, but a combination of the two. We will continue to consolidate our core business, while actively developing new initiatives.
Can we imagine marketing collaborations in Europe with Circle around the EURC stablecoin?
So, to be precise on this subject, it would be better for Circle to be present around the table. It's important not to talk about them without their presence. But what I can tell you is that yes, we do work closely with Circle. They have their European headquarters here in Paris, as well as an EMI (Electronic Money Institution) licence in France. We are very enthusiastic about EURC.
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In the US, there are a lot of marketing initiatives around USDC, particularly around everyday payments. Why don't we see the same thing in Europe?
That's a very good point. You're right: there's a strong momentum around the USDC in the United States, which is contributing to its everyday adoption. Maybe we could do more for EURC here in Europe, it's something we need to think more about.
>> Jeremy Allaire (Circle): "We want to be at the centre of the global financial system"
"We are currently in the application phase for MiCA" How is your MiCA licensing process progressing?
MiCA is a major step forward for the crypto industry and for the European Union as a whole. It's a direct reaction to Facebook's Libra project, you'll remember. 2025 will be a pivotal year. Some companies like Bitpanda or the Stuttgart Stock Exchange have already obtained their licences. For our part, we are currently in the application phase and everything is going well, but as with any regulatory process, it's difficult to predict exactly when it will come to fruition.
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When will you have an offering of crypto derivatives in Europe, which today generate a lot of revenue for platforms?
We believe that these products are essential and must be offered in a safe and regulated way for consumers. You may have heard about our acquisition in Cyprus: it's part of our strategy to offer derivatives in Europe in full compliance. We are currently finalising the preparations before launching.
>> Erald Ghoos (OKX): "Our MiFID licence is a game changer for crypto derivatives in Europe"
What does France and Paris Blockchain Week mean to you?
It's always a pleasure to talk about France. Paris Blockchain Week has become a must-attend event. It shows just how dynamic the Paris ecosystem is. We also have a collaboration with the French project Morpho: in the United States, we offer loans backed by Bitcoin thanks to their technology.
The fascinating thing is that while Europe was working hard to clarify the regulations, the United States moved very quickly. Today, Europe is in danger of losing its lead. There, companies can now offer innovations such as tokenisation of shares or Bitcoin-backed loans almost immediately, whereas in Europe this is a process that can take several years. It would be a shame if Europe lost its leading position.
What kind of licence would you need in Europe to offer Bitcoin-backed lending?
You'd have to ask a lawyer, but probably a full banking licence. It's not as simple as having a MiCA licence and being able to do everything.
In the long term, would Coinbase consider getting a banking licence in Europe?
Frankly, it's hard to say. Perhaps it's a question for Brian Armstrong himself. What we want is to continue to increase economic freedom and support users on their crypto journey. If one day that means a banking licence, why not. But for now, it's just speculation.
