Crypto firms move toward mainstream banking amid U.S. regulation shift: FT

Cryptocurrency companies are accelerating their efforts to enter the traditional banking space in the United States, capitalizing on what they see as a more favorable regulatory environment under President Donald Trump, the Financial Times reported Sunday.

Several major players in the digital asset space including Ripple, Circle (NYSE:CRCL) and BitGo applied for national trust bank charters, which would let them offer a limited set of banking services without needing licenses in every state. Meanwhile, crypto exchange Kraken is preparing to roll out both debit and credit cards in the coming weeks, signaling a broader pivot toward financial services.

Kraken’s co-CEO Arjun Sethi described the company’s card launch as part of a natural progression in crypto’s integration into the financial system, adding that the firm expects the rollout by month’s end, the FT reported.

These moves highlight a significant shift. Rather than rejecting the traditional banking system, crypto companies are now actively seeking deeper integration. The industry’s optimism has grown under the Trump administration, in contrast to the more cautious or adversarial stance perceived during Joe Biden’s presidency.

Circle (NYSE:CRCL), a stablecoin issuer, said obtaining a trust charter from the Office of the Comptroller of the Currency would be a major milestone in connecting digital assets with the established financial ecosystem. Currently, Anchorage Digital is the only crypto firm to hold such a national bank charter.

Legal experts have noted the dramatic turnaround in attitudes. Max Bonici, a partner at Davis Wright Tremaine, said that crypto companies that once saw themselves as existing outside the rules are now asking regulators for clear oversight, the FT reported.

Although national trust banks can safeguard assets and facilitate payments, they do not have the authority to issue loans or accept consumer deposits. Still, gaining such status simplifies operations and enhances financial system access by eliminating the need for state-by-state licensing.

Stablecoins getting attention

The industry’s banking ambitions come as lawmakers in Washington debate legislation to regulate stablecoins, which are digital tokens pegged to currencies like the U.S. dollar. Adam Chernichaw, a partner at Pillsbury, said the legal shift could make U.S. markets more accessible to stablecoin issuers, according to the FT.

Stablecoins are increasingly used for both trading and cross-border payments, with strong support from Trump officials. The proposed Genius Act would strengthen rules around these tokens by linking them more closely to U.S. Treasury assets. Under the bill, only regulated banks and select licensed non-bank entities would be authorized to issue dollar-backed stablecoins.

Ripple Chief Executive Brad Garlinghouse confirmed that the company has also submitted an application for a master account with the Federal Reserve, which would allow it to hold reserve funds directly with the central bank, the FT reported.

Traditional banking services

More fintech companies are also blending traditional banking and crypto. Robinhood (NASDAQ:HOOD), the retail brokerage that derived over half of its trading revenue from crypto last year, plans to launch consumer banking services in the fall. Chief Executive Vlad Tenev highlighted the firm’s goal of meeting customers’ full financial needs, including tax and estate services.

London’s Revolut, another fintech with significant crypto revenue, has long-term plans to obtain a U.S. banking license. Meanwhile, Klarna (KLAR) Chief Executive Sebastian Siemiatkowski has expressed interest in incorporating crypto into the Swedish firm’s offerings.

Large financial institutions like Bank of America (NYSE:BAC) are also eyeing stablecoin issuance, pending final regulatory guidance.

According to David Portilla, a partner at Davis Polk who advises on financial regulation, the current administration appears more willing to consider charter applications compared to the previous White House, the FT reported.

Still, not all crypto firms see a full banking license as essential. Kraken, which already holds a state-level charter in Wyoming, is launching its financial app without seeking additional federal licenses or a Fed master account. Sethi said the company prefers to collaborate with top-tier financial partners rather than directly offering products like mortgages.