Crypto Firms Pursue US Banking Licenses as Traditional Banks Reenter Crypto Market

Highlights:

• Several top crypto firms are seeking U.S. banking licenses, leveraging growing regulatory support.
• Traditional banks like Bank of America and U.S. Bancorp are re-entering the crypto market.
• Deaton expresses surprise Ripple isn’t seeking a bank license amid its financial expansion.

Several top crypto firms like Circle, Coinbase, BitGo, and Paxos want to secure banking licenses in the U.S., as per sources shared with The Wall Street Journal. These companies are reportedly taking advantage of growing support for crypto in Washington to push forward with long-term regulatory strategies.

Each firm is said to be exploring a license type that best fits its business model. While some are considering national trust or industrial bank charters to function more like traditional banks, others are focusing on licenses tailored for stablecoin issuance and crypto custody services.

💥JUST IN: Coinbase, Circle, BitGo, and Paxos all looking to apply for bank licenses or charters [WSJ]

— Bitcoin Archive (@BTC_Archive) April 21, 2025

This move shows a big change from the last few years. In the past, crypto companies and banks did not work well together. Regulators like the FDIC told banks to stay away from crypto, causing many firms to lose banking support.

A bank charter could let crypto firms act like regular banks, offering deposits and loans. However, it also brings tougher rules and strict regulatory checks. Anchorage Digital, the sole crypto firm with a federal bank charter, admits compliance has been costly and complex. CEO Nathan McCauley revealed the company spent tens of millions to satisfy regulatory requirements. Even so, it’s now reportedly under investigation by the US Homeland Security’s El Dorado Task Force.

Traditional Banks Reenter Crypto Market as Firms Pursue Banking Licenses

Traditional banks that once stayed away from crypto are now showing renewed interest. Bank of America stated it could launch a stablecoin once regulations are clarified. U.S. Bancorp is bringing back its crypto custody service through a fresh deal with NYDIG. 

Meanwhile, Global banks like Deutsche Bank and Standard Chartered are also planning to expand cryptocurrency services into the US. Both firms, already active in crypto overseas, are now exploring how to serve American clients. The shift comes as Trump’s pro-crypto stance adds regulatory clarity and boosts confidence among lawmakers and banks. 

Some banks, however, are still wary. KeyCorp CEO Chris Gorman recognized crypto as potential competition but raised concerns about anti-money-laundering and transparency. As regulations evolve, crypto firms are no longer sitting back. They’re actively pursuing banking licenses, hoping this time the traditional finance doors remain open.

Deaton Surprised Ripple Isn’t Applying for Bank License

In a recent X post, Former Senatorial candidate and pro-XRP lawyer John Deaton expressed surprise that Ripple is not among the cryptocurrency firms seeking bank licenses. He mentioned that it’s only a matter of time before crypto companies compete with traditional banks for banking services.

This surprise comes as Ripple continues to expand its financial presence, including its $1.25 billion acquisition of Hidden Road. Ripple may pursue a bank license once it settles its ongoing legal battle with the US SEC, with the lawsuit currently paused for settlement discussions.

Surprised not to see @Ripple on this list. It was a matter of time. https://t.co/HnyZrupCTP

— John E Deaton (@JohnEDeaton1) April 21, 2025