Crypto Banking Licenses Gain Momentum Under Trump

Crypto banking licenses are becoming the new frontier as major crypto firms move to integrate with traditional finance under a more favorable U.S. regulatory climate.

Crypto banking licenses are now a top priority for companies like Circle and BitGo, as they prepare to apply for official banking charters. This move marks a significant step in bridging the gap between the crypto industry and traditional financial institutions after years of regulatory uncertainty.

The push for crypto banking licenses comes in response to Donald Trump’s return to the White House, where his administration has pledged to make the U.S. a “bitcoin superpower.” Recent regulatory changes have eased restrictions, allowing banks to engage more freely with crypto firms—a stark contrast to previous policies.

Both Circle and BitGo are reportedly aiming for full crypto banking licenses, which would enable them to operate like traditional banks by offering deposit and loan services. This shift would not only legitimize their operations but also embed crypto services deeper into the U.S. financial system.

Other industry players, such as Coinbase and Paxos, are also exploring crypto banking licenses, especially with Congress advancing stablecoin legislation. The proposed laws would require stablecoin issuers to obtain federal charters or licenses, making regulatory compliance a key focus for these firms.

BitGo, nearing the submission of its application for a crypto banking license, is also linked to USD1—a new stablecoin project backed by the Trump family’s World Liberty Financial. BitGo is expected to act as the custodian for USD1’s reserves, reinforcing its position in the evolving stablecoin market.

Anchorage Digital, currently the only firm holding a federal crypto banking license, highlights the challenges ahead. CEO Nathan McCauley revealed that achieving compliance cost tens of millions, but the firm has since grown to manage crypto assets for major institutions like BlackRock and participate in large-scale bitcoin-backed lending programs.

Stablecoins remain a core component of the push for crypto banking licenses. With Tether leading the market at a $145 billion cap and Circle’s USD Coin following at $61 billion, these dollar-pegged assets are essential in providing stability and trust within the crypto ecosystem.

Traditional banks, once wary of digital assets, are rethinking their stance in light of rising interest in crypto banking licenses. Bank of America has hinted at launching its own stablecoin if regulations permit, while U.S. Bancorp is reviving its crypto custody services through a partnership with NYDIG. Additionally, Deutsche Bank and Standard Chartered are exploring U.S. crypto ventures.

Despite growing momentum around crypto banking licenses, caution persists among some financial leaders. KeyCorp CEO Chris Gorman voiced concerns regarding anti-money-laundering risks and transparency issues, suggesting that while crypto may be a competitor, regulatory vigilance remains crucial.

As the regulatory landscape shifts, crypto firms are accelerating their efforts to secure crypto banking licenses. With favorable policies on the horizon, these companies aim to solidify their place within traditional finance, hoping this new era of cooperation will open lasting doors between the two worlds.