Digital asset platforms are gradually establishing themselves as important participants in the global financial system as the use of cryptocurrencies picks up speed. Coinbase’s assets under management (AUM) demonstrate the increasing impact of cryptocurrency exchanges in conventional finance, surpassing those of major US banks.The most significant inefficiencies in government expenditure have been discovered by Elon Musk’s Department of Government Efficiency (DOGE), which has sparked debates about how blockchain-based US treasury technology may improve transparency. Lets get started.
Elon Musk’s Department of Government Efficiency (DOGE) Saves Taxpayers $36.7 Billion, Sparks Blockchain-based Transparency Debate
The US government has made a huge financial breakthrough thanks to Elon Musk’s Department of Government Efficiency (DOGE), which has saved taxpayers an incredible $36.7 billion in a matter of weeks. The development has led to a resumption in the discussion about using decentralized technology to improve government expenditure transparency.
Despite Musk’s ambitious plan to cut US government spending by up to $2 trillion, Doge-tracker only calculates savings of 1.8%. SpaceX and Tesla CEO Elon Musk revealed his cost-cutting plan to political consultant Mark Penn on January 9.
There is broad support for Musk’s plan among the cryptocurrency community. On February 9, Coinbase co-founder and CEO Brian Armstrong urged greater government transparency and praised the DOGE program.
Joining other industry voices in promoting blockchain-based solutions to enhance public financial supervision. Nonetheless, Armstrong said on X, “Great progress DOGE.” Blockchain technology is decentralized and contains publicly verifiable ledgers. Moreover, it hailed as a tool for transparency in financial systems. Blockchain-based integration might make transactions more transparent and instantly verifiable in government financial operations.
A more democratic method of allocating funds might implemented by a treasury system driven by blockchain technology. Some experts advocate for mandated spending plans, which would require public permission through voting before carry out. They contend that this strategy would drastically cut down on corruption and inefficiency in government funding.
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Separately, Musk’s Department of Government Efficiency discovered a staggering yearly spending gap in the United States of $100 billion. Apparently, Musk gave these payments to people with fake temporary identification numbers as entitlement payments.
The Treasury employees agreed that around half of that amount was clear-cut fraud. That works out to $50 billion annually or $1 billion every week! Blockchain-based thing is crazy and needs to be dealt right now,” Musk stated in an X post on February 8.
This disclosure details DOGE’s agreement with the US Treasury to tighten financial controls and improve auditing. Furthermore, every payment must now include a thorough justification outlining the necessity of each expense. This makes audits all but impossible. Furthermore, every payment must now include a thorough justification outlining the necessity of each expense.
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The government has revamped the “DO-NOT-PAY” list, which they now update annually, as another significant improvement. Musk has proposed updating the blacklisted organizations list weekly or even daily to stop fraudulent transactions from going unnoticed.
Musk’s Vision for Blockchain-based in Government Finance
Bitcoin and blockchain advocates have noticed Musk’s cost-cutting plans, and claim his transparency-focused policies could lead to a blockchain-enabled US Treasury.
According to Jean Rausis, co-founder of Smardex, implementing blockchain technology could make the United States a global leader in financial innovation.
Although it’s difficult to predict which blockchain will be most suited for the job, the fact that it is permissionless is crucial. Otherwise, they would be lying about the promised transparency. In a recent interview, Rausis stated that the Web2 and Web3 worlds would begin to merge if the US Treasury adopts decentralized infrastructure.
Proponents of the long-debated proposal of shifting government expenditures to blockchain point to advantages including cost effectiveness, auditability, and fraud avoidance. Public financial data might be readily available by utilizing decentralized networks, giving citizens real-time insight into the use of their taxes.
The official DOGE website launched on January 21 has already resulted in significant savings for US taxpayers, proving Musk’s tactics are effective.The program’s long-term goal is to cut down on government inefficiencies and bureaucracy, but it is still in its early phases.
Musk has indicated that they will conclude the operations of DOGE on July 4, 2026, coinciding with the 250th anniversary of the Declaration of Independence. By that date, the objective is to create a “smaller government that operates with greater efficiency and reduced bureaucracy.”
Musk’s attempts to reform US government expenditure could have significant repercussions that extend beyond mere fiscal policy. The potential adoption of blockchain technology at the federal level may represent a fundamental change in the manner in which governments globally oversee their financial systems.
As the cryptocurrency sector continues to advocate for enhanced financial transparency, Musk’s initiatives could act as a testing ground for the incorporation of blockchain within public governance. Regardless of whether his vision comes to fruition, it is evident that the discourse surrounding government spending and financial transparency remains ongoing.
Also read: Top 5 Blockchain Gaming Companies in 2025 – You Should Know
AUMs top $420 billion on Coinbase, showing crypto’s dominance growing
A related development is Coinbase, the third-largest centralized cryptocurrency exchange (CEX) based on trading volume, managing more than $420 billion in digital assets for consumers. Coinbase CEO Brian Armstrong claims that the company is worth more than the 21st largest bank in the nation due to its impressive assets under management (AUM) statistics.
Armstrong highlighted Coinbase’s quick growth by drawing a contrast between the blockchain-based platform’s AUM and that of conventional banks in a post on X on February 7. According to him, Coinbase would be the 21st largest bank in the US if it were a bank.
According to Armstrong, Coinbase would rank 8 in terms of AUM if it were classified as a brokerage firm rather than a bank. Due to the growing popularity of digital assets, this comparison highlights the importance of the cryptocurrency exchange in the finance.
New York Community Bancorp (NYCB), the US’ 21st largest bank, holds $112.9 billion in assets, more than 3 times that of Coinbase.
NYCB bought the now-defunct Signature Bank in 2023, a crypto-friendly bank that failed under regulatory scrutiny. In the meantime, Coinbase made $273 million in Q4 2024, its first profit since the end of 2021. In the blockchain-based digital age, this achievement supports the idea that cryptocurrency platforms are outperforming conventional financial institutions.
Brian Armstrong predicts a reduction in fragmentation of traditional banking services as crypto-driven financial services combine.
The distinction between these blockchain-based groups is becoming more hazy in the context of crypto. You will have a single primary financial account that fulfills all of these purposes in the revised financial system. “Global GDP will run on crypto rails to a greater extent over time,” Armstrong said.
DOGE and US Treasury joint agreement. Source: Elon Musk
Closing thoughts
In summary, Coinbase’s rising AUM indicates growing institutional interest in digital assets as a competitive alternative to traditional banking. Coinbase has the potential to rise even farther in the rankings of the biggest financial institutions. With more technological advancements, legislative changes, and mainstream financial integrations.
Crypto platforms like Coinbase are establishing themselves as the next wave of financial powerhouses. Likewise, one that runs on decentralized, and transparent while traditional banks battle with liquidity problems and regulatory obstacles.
Armstrong’s vision of a unified financial ecosystem driven by cryptocurrency might usher in a new era of financial domination. In addition, which digital assets account for the majority of global economic activity.
Coinbase’s extraordinary growth in AUM, which surpasses even reputable US banks, confirms its position as a force in global finance. The distinctions between banks, brokerages, and digital asset platforms are getting more hazy as the use of cryptocurrencies grows. The upcoming years will decide whether the established financial system can completely incorporate the other crypto sector.
Also read: Bringing GameFi to the Next Level Through AI, Blockchain and DeFi
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