The crypto industry is steadily growing its presence in the banking systems, driven by regulatory shifts and renewed interest. After the collapse of FTX and crypto-friendly banks like Silvergate Capital and Signature Bank, many financial firms moved away from crypto. However, a shift in policy under President Trump, who aims to make the U.S. a “bitcoin superpower,” has fueled deeper integration.
Several crypto firms, such as Circle and BitGo, plan to apply for banking licenses, which could allow them to offer services like deposits, loans, and stablecoin issuance. Also, firms like Coinbase (COIN) and Paxos are exploring similar moves.
These moves come as restrictions on banks engaging with crypto have been eased since Trump returned to office. Also, Congress is advancing bills to regulate stablecoins, requiring issuers to hold licenses.
At the same time, World Liberty Financial, the Trump family’s crypto venture, plans to launch a stablecoin, USD1. Its reserves will be managed by BitGo, which is applying for a bank charter.
Wall Street Banks Warm Up to Digital Assets
These developments have prompted banks to re-engage with crypto. For instance, Bank of America (BAC) is exploring its own stablecoin, while U.S. Bancorp (USB) is relaunching its crypto custody services.
Further, Deutsche Bank (DB) and Standard Chartered (SCBFF) are looking for ways to expand their crypto operations in the U.S., pointing to a rising partnership trend between traditional banks and the crypto industry.
While some banks remain cautious due to regulatory concerns, such as anti-money-laundering rules, the changing landscape suggests that crypto is becoming a more permanent part of the financial system.