Crypto Giants Eye U.S. Bank Licenses in Landmark Shift
Circle, Coinbase, BitGo, and Paxos prepare to reshape finance
A seismic shift is underway in the financial world as leading cryptocurrency firms—Circle, Coinbase, BitGo, and Paxos—prepare to apply for banking licenses in the United States, according to a recent report by The Wall Street Journal. This move signals a strategic evolution in how crypto companies intend to operate within the traditional financial system.
From Digital-Only to Full-Service Finance
For years, cryptocurrency companies have thrived in a purely digital ecosystem, offering services like trading, staking, and tokenized assets. Now, driven by maturing markets and regulatory developments, these firms are looking to expand beyond crypto and offer deposit and loan services, just like traditional banks.
"This transition places them in direct competition with legacy financial institutions," the report states.
Each company is exploring different types of charters or licenses, such as:
- National trust charters
- Industrial bank charters
- Limited licenses for stablecoin issuance and custody services
This tailored approach reflects their diverse business models and strategic goals.
Legislation and Political Momentum
This licensing push comes amid growing political support for digital assets in Washington. The Trump administration’s pro-crypto stance has catalyzed industry efforts to gain regulatory legitimacy. Lawmakers are currently advancing stablecoin legislation that would require issuers to be federally chartered or licensed, aiming to close the gap between crypto innovation and financial oversight.
The U.S. Securities and Exchange Commission (SEC) is also revisiting its regulatory guidance to clarify industry standards and attract more institutional players.
Wall Street Warming Up to Crypto
In a parallel development, Deutsche Bank and Standard Chartered—global banking giants with existing crypto divisions abroad—are exploring entry into the U.S. crypto market. This represents a major turnaround from their earlier cautious stance.
"Growing regulatory clarity is drawing traditional financial institutions back into the fold," notes WSJ.
These banks are reportedly assessing how to offer crypto services to U.S. clients, leveraging their global infrastructure and expertise.
A Reversal of Fortune
Just a few years ago, financial regulators like the FDIC warned U.S. banks against working with crypto firms, leading to widespread de-banking. Now, with clearer regulations and political will, crypto firms see an opening to establish legitimate, regulated banking operations.
If successful, this move could finally bridge the long-standing divide between traditional finance and the crypto world.
