Community banks see net deposit outflows to Coinbase: Study

CoinTelegraph

by Nate Kostar

February 19, 2026

AI-Generated Deep Dive Summary

A new study reveals that community banks are experiencing a significant shift in deposits as customers move their funds to cryptocurrency exchange Coinbase. According to data analyzed by banking firm KlariVis, 90% of the 92 community banks reviewed had customers transacting with Coinbase. Over a 13-month period, $78.3 million net flowed from these institutions to Coinbase, with $2.77 moving out for every $1 returning. This outflow was heavily concentrated in money market accounts, where 96.3% of transactions represented funds leaving banks for the crypto exchange. Community banks, defined as financial institutions with less than $10 billion in assets, are particularly vulnerable to this trend due to their smaller customer bases and reliance on deposits. The study analyzed 225,577 Coinbase-related transactions across these banks, highlighting a clear pattern of资金 movement from traditional banking into cryptocurrency. This shift underscores the growing appeal of crypto platforms like Coinbase among retail investors, who may be drawn by higher yields or greater flexibility in managing their funds. The findings suggest that community banks are grappling with a new competitive landscape as customers increasingly explore alternative financial services. While some institutions may view this as an opportunity to innovate and offer more digital banking solutions, others could face challenges in retaining deposits. For crypto enthusiasts, the data reinforces Coinbase's position as a mainstream financial destination, reflecting broader adoption of cryptocurrencies by everyday consumers. This trend also raises questions about the future of retail banking and the role of regulatory bodies in overseeing such transitions. As community banks adapt to these changes, they may need to explore new strategies to compete with digital-first financial platforms like Coinbase. For readers interested in crypto, this study highlights the growing interplay between traditional banking systems and the cryptocurrency ecosystem, offering insights into how

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Originally published on CoinTelegraph on 2/19/2026