Crypto firms are making a fresh push to embed themselves in the U.S. banking system with companies like Circle and BitGo preparing to apply for banking licenses, aiming to strengthen ties with traditional finance after years of regulatory disconnect.
The shift follows Donald Trump’s return to the White House and his vow to turn the U.S. into a “bitcoin superpower.” Under his administration, regulators have eased restrictions that previously forced banks to seek approval before engaging with crypto companies. Apart from this, new federal guidance for banks is also expected later this year which might include favorable policies towards the crypto industry.
People familiar with the matter say Circle and BitGo are eyeing full banking charters, which would let them operate more like traditional lenders, offering deposit and loan services.
Others, including Coinbase and Paxos, are also exploring licensing options, especially as Congress moves ahead with stablecoin legislation that would require issuers to be federally chartered or licensed, as per WSJ.
BitGo, which is close to submitting a bank charter application, is also tied to USD1, a new stablecoin launched by World Liberty Financial, a Trump family-backed crypto venture. The firm will reportedly safeguard reserve for USD1.
Anchorage Digital, the only crypto company currently holding a federal bank charter, says that the road to compliance hasn’t been easy. CEO Nathan McCauley said the firm spent tens of millions to meet regulatory demands.
Anchorage has steadily grown its role in the institutional crypto space. It now acts as a custodian for BlackRock’s iShares Bitcoin Trust and is also part of a $2 billion bitcoin-backed lending initiative alongside Cantor Fitzgerald and Copper.
Meanwhile, stablecoins continue to play a central role in the industry. Tether remains the largest, with a market cap of $145 billion, followed by Circle’s USD Coin at $61 billion. Backed by cash and short-term assets, these digital tokens are designed to stay pegged to the U.S. dollar, making them a more stable entry point for crypto users.
Traditional banks that had once distanced themselves from crypto are beginning to step back in. Bank of America recently said it would consider launching its own stablecoin if the legal framework is in place. U.S. Bancorp is relaunching its crypto custody service through a new partnership with NYDIG. A group of international banks, including Deutsche Bank and Standard Chartered, is also exploring U.S. crypto operations.
Still, some banks remain cautious. KeyCorp CEO Chris Gorman said crypto might become competition, but raised concerns about anti-money-laundering challenges and transparency.
As the rules shift, crypto firms aren’t waiting on the sidelines anymore. They’re moving toward banking licenses—hoping this time, the doors of traditional finance stay open.
Also Read: Bank of America Targets Tether, Circle with Stablecoin Push
