Crypto firms are increasingly targeting the U.S. banking sector to integrate themselves more deeply within the traditional financial industry. Interestingly, favorable signals from regulators, including Trump’s support for blockchain-related innovations, are fueling the trend.
Crypto Firms Entering U.S. Banking System
Stablecoin issuer Circle has applied to the Office of the Comptroller of the Currency (OCC), aiming to establish the “First National Digital Currency Bank.” The firm claims the proposed national trust bank will manage its over $63 billion USDC reserves and offer institutional custody services.
Already operating under state charters in New York and South Dakota, Custodial crypto firm BitGo has recently filed a federal application. BitGo aims to broaden its service offerings by compiling its regulatory standing under one federal license. It believes the move will reinforce its position in the competitive institutional custody market.
San Francisco–based Ripple has also made the same move for an OCC trust bank charter and requested a Federal Reserve master account. The charter would support its stablecoin, RLUSD, which already holds about $470 million in market cap on the XRP Ledger and Ethereum blockchains.
Meanwhile, Kraken has not applied for a bank charter yet, but it has been entering U.S. traditional finance through digital banking tools. The exchange recently launched debit and credit card programs in partnership with Mastercard. The Initiative gives users the ability to spend crypto globally at over 150 million merchants.
Why Target the U.S. Banking Sector?
Crypto firms are targeting the U.S. banking sector to gain cost-effective federal infrastructure and enhance credibility. A national trust bank charter is especially attractive because it reduces borrowing costs and opens access to Federal Reserve payment systems. This makes it financially and operationally efficient compared to relying on third-party banks or financing.
Beyond cost and infrastructure benefits, crypto companies view bank charters as a path to regulatory legitimacy and institutional trust. For example, Circle, cited earlier, is pursuing a charter to bring its stablecoin program under formal banking oversight. Notably, the banking moves are a transformation from crypto’s earlier stance of avoiding regulation.
Finally, the banking trend is shaped by regulatory progress in Trump’s administration. Senate-backed stablecoin bills like the GENIUS Act would require issuers to hold reserves in regulated institutions, making banking charters necessary for compliance. Notably, securing banking status will enable these crypto firms to compete with mainstream finance.
