Coinbase Pushes for 50% AI-Generated Code – A New Era for Crypto Platforms?

Coinbase, one of the largest cryptocurrency exchanges in the United States, is taking a bold step into the future of software development. The company recently revealed that 40% of its daily code is now written with the help of artificial intelligence (AI). Its CEO, Brian Armstrong, has set an ambitious goal, by October 2025, more than half of Coinbase’s code should be AI-generated.

This announcement has sparked excitement, debate, and even concern in the tech and crypto communities. Could this approach transform the way crypto platforms operate? Or does it bring risks that could undermine trust in such a sensitive financial system?

What Does AI-Generated Code Mean?

Traditionally, software is written entirely by human engineers. AI-generated code flips this approach by using AI tools like GitHub Copilot and Cursor to help developers write programs faster. These tools can autocomplete functions, suggest solutions, and even create entire blocks of code after being given instructions.

At Coinbase, engineers are now required to use these AI tools in their work. The company argues that this makes development faster and more efficient. However, Armstrong also admits that AI code still needs human review. AI can sometimes make mistakes, a problem known as “hallucination,” where the system generates code that looks correct but does not function properly or safely. In a financial setting like crypto trading, such errors could have serious consequences.

This rapid adoption has been driven by the company’s policies. Armstrong made it clear that engineers who refused to use AI tools risked losing their jobs. Some employees were even dismissed for resisting the new approach. While controversial, this hardline stance reflects just how determined Coinbase is to make AI central to its future.

Part of a Bigger Industry Trend

Coinbase is not the only company moving towards AI. Across the tech industry, AI is changing how software is developed. A 2025 GitHub survey showed that 92% of developers at large companies use AI coding assistants. Microsoft and Google have reported that around 30% and 25% of their code, respectively, is generated by AI. This means Coinbase’s decision is part of a larger trend where AI is becoming a regular tool for programmers.

For Coinbase, faster development can directly benefit customers. New features can be created and launched more quickly. In May 2025, for instance, Coinbase introduced the x402 protocol, which makes stablecoin payments faster and more efficient. Security systems could also become more sophisticated. Coinbase already uses AI to detect fraud, protecting users from scams and suspicious activities. Additionally, documentation and developer support have improved. Coinbase now provides AI-powered documentation tools that guide developers in real-time, reducing the time needed to integrate with its platform.

If this trend continues, Coinbase users could see updates and new services being introduced more often than ever before.

Timeline of Coinbase’s AI Journey in 2025

• April – AI-generated code accounts for 18% of daily output.
• May – Coinbase launches the x402 stablecoin payment protocol.
• August – AI adoption becomes mandatory for engineers; non-compliance leads to dismissals.
• September 3 – Armstrong announces that AI code has reached 40% of daily output and sets a goal of 50% by October.
• Ongoing – Hiring focuses on AI-skilled backend engineers, with 93 roles currently open.

Coinbase’s strong move towards AI highlights the broader trend in both tech and crypto industries to use AI for a competitive edge. In the crypto world, AI is already being used in several ways. Trading bots analyze markets and make quick decisions. Fraud detection systems identify suspicious transactions. Blockchain analytics track activity across different networks. If Coinbase can successfully balance speed with safety, it could change how crypto exchanges are designed and run. However, if the quality drops or AI introduces security risks, the company could lose user trust in a very competitive market.

Final Thoughts

Coinbase’s push for 50% AI-generated code by late 2025 is a clear sign of where the tech industry is headed. The potential benefits, faster updates, smarter security, and greater efficiency are enormous. Yet, the risks are equally significant, especially in an industry where trust and reliability are everything.

For now, one thing is clear, the fusion of AI and crypto is not just a passing trend, it is shaping the future of trading platforms and may define how the next generation of financial technology is built.