Crypto Firms Seek Banking Licenses Amid Shifting Regulatory Landscape

Cryptocurrency companies are taking new steps to enter the traditional banking system, with several planning to apply for charters or licenses that would bring them under stricter regulatory oversight—and potentially closer to mainstream finance, the Wall Street Journal reports.

Firms including Circle, BitGo, and others are preparing to seek bank charters, according to people familiar with the matter. Crypto exchange Coinbase and stablecoin issuer Paxos are also considering similar moves, as the industry responds to evolving regulatory conditions and signals from the Trump administration supporting deeper integration of crypto with the US financial system.

This renewed push comes two years after crypto faced widespread skepticism from the banking sector, following the collapse of FTX and the shutdown of crypto-friendly banks such as Silvergate Capital and Signature Bank. The regulatory clampdown that followed prompted many financial institutions to sever ties with digital asset firms. However, the return of Donald Trump to the White House and his stated ambition to make the US a “bitcoin superpower” have helped reopen the conversation.

Congress is currently advancing legislation that would create a formal regulatory framework for stablecoins—digital tokens pegged to government-issued currencies like the US dollar. If enacted, the laws would require stablecoin issuers to hold charters or licenses, prompting several firms to begin the application process in anticipation.

Some companies are pursuing broader national trust or industrial bank charters, which would allow them to offer services similar to traditional banks, such as deposit-taking and lending. Others are focusing on limited-purpose licenses that would permit them to issue stablecoins.

BitGo, for instance, plans to apply for a bank charter soon, sources said. The company is also acting as custodian for the Trump family’s new stablecoin project, USD1, launched through World Liberty Financial. The stablecoin’s reserves are expected to be managed by BitGo, underscoring the increasing intersection between politics and crypto.

Any crypto firm granted a bank charter would be subject to enhanced regulatory scrutiny. Anchorage Digital, the only crypto firm in the US with a federal bank charter to date, has spent tens of millions of dollars to meet compliance obligations. In 2022, it faced a consent order from banking regulators over shortcomings in its anti-money-laundering protocols.

“It has not been easy,” said Nathan McCauley, CEO of Anchorage, which received its charter in 2021.

Still, he emphasized that crypto firms can meet the full range of regulatory requirements typically expected of banks.

Anchorage is now partnering with traditional financial firms like Cantor Fitzgerald and Copper on large-scale lending programs backed by bitcoin. BitGo also recently began working with BlackRock’s iShares Bitcoin Trust as a custodian, alongside Coinbase.

While many major banks once distanced themselves from the crypto sector, some are beginning to reconsider their stance. Bank of America CEO Brian Moynihan said in February that his institution could issue its own stablecoin if a clear legal framework is put in place. US Bancorp has announced plans to restart its crypto custody services through a collaboration with NYDIG, a digital asset firm.

A consortium of global banks, including Deutsche Bank and Standard Chartered, is reportedly exploring opportunities to expand crypto operations in the US However, not all are ready to fully commit. KeyCorp CEO Chris Gorman recently described crypto as both a potential competitor and an opportunity, but cautioned that regulatory concerns—especially around traceability and anti-money-laundering—still loom large.

The evolving policy landscape may continue to shift in crypto’s favor. Regulators recently rolled back a requirement for banks to obtain approval before engaging in crypto-related activities. Additional guidance is expected later this year, which could further clarify how traditional banks and digital asset firms can collaborate.