The line between traditional banking and cryptocurrency platforms continues to blur as multiple crypto companies actively seek state or national bank charters. According to a Reuters report on March 18, 2025, these firms view obtaining banking licenses as a strategic move to expand their operations under the Trump Administration’s pro-crypto policies.
Why Crypto Platforms Want to Become Banks
While crypto platforms already offer many banking-like services, such as savings, lending, and remittances, obtaining an official banking license provides several advantages.
- Enhanced Credibility and Trust
Becoming a licensed bank increases the trustworthiness of crypto firms, attracting both individual and corporate clients who are more familiar with traditional banking systems. A bank charter also enables companies to scale their operations significantly. - Regulatory Clarity and Predictability
Currently, many crypto businesses operate in a grey regulatory area. By acquiring a banking license, they can access a clearer legislative framework, allowing them to develop their strategies with greater confidence. - Direct Access to Deposits
Without a banking license, crypto firms must rely on borrowing and third-party services, incurring high fees. A bank charter allows them to manage customer deposits directly, reducing costs and increasing financial flexibility.
Policy Shifts Encouraging Crypto-Banking Integration
The push for crypto firms to obtain bank charters comes at a time of increasing acceptance of cryptocurrency within traditional financial systems. Earlier this month, the U.S. Office of the Comptroller of the Currency (OCC) reversed previous restrictions, now permitting banks to engage in cryptocurrency-related activities, including stablecoin operations and crypto custody services.
Furthermore, fintech company SmartBiz’s recent acquisition of Centrust Bank marks a potential trend, as it became the first fintech firm to receive a bank charter since 2021.
The Growing Convergence of Banks and Crypto Platforms
While the banking sector and cryptocurrency platforms were initially seen as opposing forces, the reality has evolved into a cooperative dynamic. Banks have been integrating blockchain solutions, while crypto firms have begun offering banking services in underserved regions.
Banks Adopting Blockchain
Traditional financial institutions have increasingly leveraged blockchain technology to improve efficiency and security. Distributed ledger systems and smart contracts help automate processes, enhance compliance, and speed up cross-border transactions. Some notable blockchain integrations include:
- JPMorgan Chase & Goldman Sachs – Utilizing blockchain for Know Your Customer (KYC) verification.
- Fnality International Consortium – A collaboration between major banks like Barclays and HSBC to streamline cross-border payments.
- Central Bank Digital Currencies (CBDCs) – Designed to reduce intermediary layers between central banks and consumers while still allowing commercial banks to offer traditional services.
Crypto Platforms Filling the Banking Gap
In rural and unbanked regions with high mobile internet penetration, crypto platforms have stepped in to provide essential financial services. In parts of Sub-Saharan Africa and Asia, residents use cryptocurrency for remittances and savings, effectively making these platforms their primary banking institutions.
The Rise of Neobanks and Crypto-Friendly Banking
The early 2020s witnessed a surge in neobanks—digital-first financial institutions that offer traditional banking services without physical branches. With user-friendly apps and lower fees, neobanks such as Chime and Revolut have attracted millions of users. According to Plaid, over 21% of individuals aged 21 to 56 now use neobanks as their primary checking account.
The logical progression for some neobanks has been to incorporate cryptocurrency operations. Revolut, for instance, allows users to trade crypto alongside stock investments, currency exchanges, and virtual card services.
Future Outlook: More Crypto Firms Becoming Banks?
With U.S. regulators and crypto businesses increasingly open to integration, more cryptocurrency platforms are likely to pursue bank charters. The trend suggests a future where crypto-native firms and traditional financial institutions operate within a more unified regulatory and service framework.
While the U.S. leads the way in this transition, it remains to be seen whether other global regulators will follow suit. The evolution of crypto-banking integration will shape the financial landscape in the years to come.
