Coinbase co-founder and CEO, Brian Armstrong, claimed in his recent X post that the way traditional finance operates is “broken,” reviving rhetoric that has circulated in crypto circles for some time.
In the past few months, some crypto enthusiasts and major players have argued that blockchain technology will eventually replace the entire traditional system, highlighting its flaws and how the new technology rises above them.
For starters, Abigael Johnson, the CEO of Wall Street giant Fidelity, described the technology behind traditional finance as “really kind of scary” and primitive, suggesting that blockchain will ultimately replace it.
Armstrong says young adults are leaning towards alternative assets like crypto
In his post, Armstrong stated that the traditional system heavily undermines investing, particularly for younger generations. He noted that this generations feel excluded from traditional wealth-building opportunities and thus is looking more to crypto and other alternative assets.
We know the way the traditional financial system works is broken.
It also breaks investing, and there’s a generational shift happening – younger people feel locked out of the old wealth ladder, and they’re increasingly looking to alternative assets like crypto. https://t.co/8JMhgX6FoK
— Brian Armstrong (@brian_armstrong) December 17, 2025
Armstrong explained, “It also breaks investing, and there’s a generational shift happening – younger people feel locked out of the old wealth ladder, and they’re increasingly looking to alternative assets like crypto.”
To which X user, Karol Kozicki agreed, saying, “The traditional ladder is broken, and crypto has been one of the real escape hatches for our generation to build significant wealth.”
Earlier, Armstrong had also stated that most Gen Z and millennials now see crypto as foundational to their economic plans, allocating about three times more to alternative assets than older investors do. According to his data from Coinbase, approximately 73% of young adults find it more challenging to accumulate wealth using traditional opportunities. Moreover, about 45% of younger investors are holding onto crypto, compared to a smaller 18% of older investors. Its analysis also showed that roughly 30% of younger investors intend to purchase a crypto ETF, while only about 18% of older participants are interested.
What’s more, younger investors seem to be more ready to accept risk for the good of wealth, using margin almost twice as often as older investors and expecting a higher return. This outlook informs their trading strategies. They are especially bullish on crypto’s future role, with about 80% expecting it to become significantly more important, compared to roughly 60% of older people.
Johnson believes competition and regulatory changes will drive the transition to blockchain
Fidelity’s Johnson says the world is moving to blockchain, and while it may not happen overnight, the changing dynamic will be driven by competition and regulatory standards. Like Armstrong, she described the traditional financial system as fundamentally broken. However, she asserted that simply embracing blockchain won’t move the industry forward; the transition has to be compelled.
Nonetheless, she said, over time, institutions that fail to adopt new technologies risk losing market share. Ideally, customers will gravitate toward banks offering instant blockchain settlements over slower traditional systems, and brokerages capable of handling crypto will draw investors.
Several leading banks on Wall Street are already testing crypto initiatives, as exchange-traded funds and treasuries pour billions into Bitcoin, Ethereum, and other cryptocurrencies. Plus, there have been more changes to market regulations, including the enactment of the GENIUS Act in the US and the MiCA framework in Europe.
Her company, Fidelity, is already at the forefront of blockchain adoption. By the start of December, according to Dune Analytics, the company’s FBTC ETF controlled the second-highest Bitcoin holdings after BlackRock, with around $20 billion under management.
The firm also rolled out a new tokenized money market fund designed to interact with stablecoins, allowing clients to generate yield and transition into crypto when needed. Furthermore, its Solana ETF launched in mid-November.
