A surge in applications for banking licenses by major crypto firms in the United States is signaling a shift in the relationship between the crypto sector and traditional banks. Companies like Circle, Coinbase, BitGo, and Paxos are taking advantage of a wave of pro-crypto sentiment in Washington to advance their long-term plans.
According to sources cited by The Wall Street Journal, these firms are exploring different types of licenses depending on their business models. Some are pursuing national trust or industrial bank charters, allowing them to operate similarly to traditional banks. Others are focusing on more limited licenses for stablecoin issuance and custody services.
This move marks a significant reversal from the past few years, when financial regulators like the FDIC warned banks to steer clear of crypto-related entities, leading to widespread de-banking across the industry. The current push for banking licenses could bridge the gap between crypto firms and the financial system, fostering closer collaboration.
In a parallel development, major global banks like Deutsche Bank and Standard Chartered, which have previously shied away from crypto, are now looking to expand their crypto services into the US market. With growing regulatory clarity and a more favorable stance towards digital assets, these institutions are exploring ways to offer crypto services to US-based clients.
The Trump administration’s pro-crypto stance has played a role in fostering renewed engagement between the crypto sector and US lawmakers and regulators. President Trump’s policies have emphasized the importance of digital assets in the country’s financial future, prompting regulatory bodies like the SEC to review existing guidance to attract more participants to the sector.
Efforts are underway to eliminate ambiguity and establish a more predictable legal framework for the crypto industry to thrive. As global banks and leading crypto firms gear up to capitalize on the evolving regulatory landscape, the US market is poised for increased integration of crypto services into the traditional financial system.