Comment by toomuchtodo | Hacker News Reader

Comment by toomuchtodo | Hacker News Reader

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Chase Bank is partnering with Coinbase, and is one of the largest commercial banks in the country. Now, I'm unsure what the UX is going to look like in my Chase iOS app vs Coinbase app, but that is a strong signal of directionality. If I can send money globally in a few clicks with Chase and TransferWise, I expect to be able to get fiat onto crypto rails (including stablecoins) pretty quick in a similar fashion soon. Chase already supports RTP and FedNow for domestic dollar instant payment rails, but if Coinbase maintains an account with them (any bank, really, who wants to support this), a book entry will do for immediate funds availability.

My mental model is "what is the least friction to get value from fiat stores to uncensored value transfer rails" on this topic.

https://www.coinbase.com/blog/Coinbase-and-JPMorgan-Chase-jo...

> Beginning this fall, you’ll be able to use Chase credit cards to fund your Coinbase account. Beginning in 2026, you’ll be able to redeem Chase Ultimate Rewards Points to fund your Coinbase account. For the first time, points from a major credit card rewards program will be redeemable for crypto rewards. Beginning in 2026, you’ll be able to directly link your Chase account to Coinbase. Chase customers will be able to seamlessly link their bank accounts to Coinbase for another fast, easy way to buy crypto - in addition to all of our existing integrations.

(As of 2023, Chase had 18.5 million checking accounts. In 2024, Chase opened nearly 2 million net new checking accounts. In July 2025, it was reported that JPMorgan Chase holds the largest total deposits among US banks, totaling over $2T; not a JPMC fan by any means, but they are the Goliath of commercial banks as it stands)

I think you're misinterpreting here..

First, this product only funds one thing, an account at coinbase. You then have to transfer money to people from whom you would like to buy. No protection from fraud. No nothing. Second, even if it did the real time purchase from the vendor directly from Chase with all the attendant protections, (which it doesn't, but even if it did), we'd really need all banks and credit unions to be using it. If it's just Chase, it's going to be inconvenient for a sizable number of people.

(By "sizable", I mean the majority.)

I am willing to bet economically that there is a cohort of financial services customer who will waive fraud protections (Reg E and credit card chargebacks, broadly speaking) for access to make payments that would otherwise be censored. To be determined if we get there of course. I say this as someone who had to figure out payments for adult content decades ago for an adult content star, and was one of the earlier cohorts of ccbill payment processing customer. In my experience, if people want something, they will find a way to pay for it. As a financial services provider, your job (imho) is to enable customers to move the money where they want to. Cash, instant payments, ach, debit or credit cards, wires, stablecoins, it doesn't matter.

Chase hasn't been able to stop me from funding merchants they would otherwise not do business with once my funds get to Coinbase, for example. This is the value of stablecoins imho, the ability to move fiat in a low regulation manner through technical performance art. I'd mail cash if I had to, but I'd prefer the stablecoin rails when higher regulation instant payments aren't available to move value due to gating.

(day job is at a fintech, thoughts and opinions always my own)

Indeed all that would do is make Coinbase a largely unregulated clearing house for fiat transactions. Unless the transactions themselves are actually made on a cryptocurrency blockchain, I can't imagine what advantage Coinbase could have over several other financial companies who have a lot more experience in running clearing houses than Coinbase do.

Their processor, Chase Paymentech, doesn't accept businesses in adult industry. I doubt they will allow their infrastructure to handle crypto payments for it either.

It doesn't matter how decentralized it is when you have a centralized merchant account.

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