Crypto firms dive into banking amid friendlier US regulations

Crypto companies like Ripple, Circle, and Kraken are expanding into traditional banking as the U.S. government signals greater support for digital assets.

Cryptocurrency firms are rapidly moving into traditional banking in the U.S., hoping to benefit from a more welcoming regulatory climate under President Trump. Companies such as Ripple, Circle, and BitGo have applied for national trust bank charters, which would allow them to offer select banking services. Meanwhile, crypto exchange Kraken plans to release both debit and credit cards by the end of the month.

Kraken’s co-CEO Arjun Sethi called this shift a “natural convergence,” reflecting the growing confidence within the industry. Unlike under the previous administration, many now see the current U.S. leadership as supportive of digital asset innovation.

Circle sees a trust bank charter from the Office of the Comptroller of the Currency (OCC) as a major step toward integrating crypto into the mainstream financial system. Currently, Anchorage Digital is the only crypto firm with such a charter. This status lets companies handle payments and asset custody across all states, without needing separate licenses in each one.

Crypto’s embrace of regulation marks a major shift. “It’s a 180,” said Max Bonici of Davis Wright Tremaine, noting how crypto companies once aimed to operate outside traditional finance but now seek oversight to gain trust and reach.

The timing aligns with pending legislation like the Genius Act, which aims to regulate stablecoins more strictly. The law would require that only OCC-approved banks or similar groups issue stablecoins, and back them with U.S. Treasuries.

Ripple has also applied for a Federal Reserve master account to hold reserves for its stablecoin plans. Robinhood, which earned much of its recent revenue from crypto trading, will offer banking services later this year. UK fintech Revolut and Swedish lender Klarna are also eyeing deeper moves into crypto-finance.

Even major banks like Bank of America are exploring stablecoins, waiting on clearer regulation before launching their own. However, some players like Kraken don’t intend to become full-service banks. Instead, they prefer to partner with existing providers to offer select services without needing a bank license.