Crypto Firms Seek Banking Licenses: Exploring the Convergence of Banks and Crypto Platforms
On March 18, 2025, Reuters reported that many crypto firms are seeking to become state or national banks. This is seen as a major step towards expanding operations under the Trump administration. But how will this change as crypto firms become banks? Are they already offering bank-like services? Will banks become more open to crypto?
Cryptocurrency platforms have long acted like banks by offering asset storage services, earning interest from staking or mining, and providing loans against crypto assets. In areas with high rates of unbanked people but widespread smartphone penetration, cryptocurrencies have taken on a role akin to traditional banking.
However, becoming a fully-fledged bank with a state or national license is different from simply operating as a bank-like institution. Cryptocurrency platforms have a greater chance of achieving this as US policy becomes more crypto-friendly. Many lawyers have also noted that crypto companies are cautiously looking for opportunities to convert to banks.
Trump’s crypto-friendly policies are encouraging crypto companies to apply for banking licenses:
Earlier this month, the Office of the Comptroller of the Currency changed its stance on crypto, allowing banks to engage in crypto-related activities, including stablecoins, crypto custody services, and more.
Benefits of Being a Bank for Cryptocurrency Platforms
One of the main reasons crypto companies want to become banks is to enhance their credibility and attract more customers, including businesses. Banking licenses help crypto companies increase transparency and legality, while also allowing them to scale their operations significantly. While becoming a bank entails more scrutiny, on the other hand, it gives the company a more legitimate image in the eyes of the public.
Additionally, banking licenses help crypto companies move out of the legal gray area, providing a clearer environment for growth and allowing them to pursue their business strategies with more confidence.
Another benefit is having direct access to customer deposits. Without a license, crypto companies have to borrow money and pay higher interest rates. With a banking license, they can use customer deposits and have more flexibility in their business development decisions.
The intersection of banking and crypto
Over the years, banks and crypto businesses have gradually learned from each other and shaped their own ways of operating. Cryptocurrencies are no longer seen as a major threat to the traditional banking system. Many banks are adopting blockchain solutions in their operations, while crypto platforms also provide traditional banking services such as lending or money transfers.
Banks such as JPMorgan Chase and Goldman Sachs are using blockchain to automate the “Know Your Customer” (KYC) process. Other major global banks are also using blockchain for cross-border transactions, speeding up payments and reducing transaction costs.
At the same time, in regions where traditional banks are not widely used but mobile phones are popular, cryptocurrencies have become the main means of transferring money and saving. Cryptocurrency platforms have effectively replaced the role of banks in many parts of Africa and Asia.
Neobanks and the Cryptocurrency Integration Trend
The rise of digital banks (neobanks) such as Revolut and Chime in recent years has shown a strong growth trend. These banks not only provide online banking services but also integrate cryptocurrency trading features. Revolut is a prime example, supporting stock trading, currency exchange, and cryptocurrency-related activities.
In the future, we are expected to see more crypto companies becoming full-fledged banks as both businesses and regulators show interest in this development. Sooner or later, this trend could spread to other countries and shape a new future for both banking and cryptocurrency.
