Cryptocurrency companies are accelerating their push into the traditional US banking sector, a move that would have been unthinkable just a few years ago. Once defined by their rebellious ethos and slogans like “be your own bank,” crypto businesses now want official bank charters, trust licenses, and direct ties to the Federal Reserve.

 

At the centre of this shift is a new political landscape under President Donald Trump, whose administration has signalled a far friendlier approach to digital assets than the previous Biden White House. This perceived thaw is driving a rush to integrate crypto deeper into America’s financial system.

 

From crypto rebels to regulated players

 

In the US, crypto heavyweights like Ripple, Circle, and BitGo are seeking national trust bank charters from the Office of the Comptroller of the Currency (OCC). This status allows them to hold custody of assets and process payments nationwide without needing licenses from each individual state. While trust banks can’t lend money or accept deposits, the regulatory clarity they offer is priceless for crypto firms eager to be taken seriously.

 

“It's a 180 from where a lot of these crypto companies started, saying ‘we don’t need banks, we don’t need laws,’” said Max Bonici, partner at Davis Wright Tremaine. “Now they’re saying ‘regulate us.’”

 

Kraken, meanwhile, plans to roll out crypto-linked debit and credit cards, and Robinhood is preparing to launch banking services in the autumn, aiming to be a one-stop shop for retail finance. Even FinTechs like Revolut and Klarna have ambitions to merge crypto products into broader financial offerings.

 

The stablecoin battleground

 

Much of this transformation revolves around stablecoins, digital tokens that are pegged to traditional currencies, such as the US dollar. Legislation such as the proposed Genius Act could tie stablecoins more closely to US Treasuries and reserve requirements. Only regulated banks or select licensed entities would be allowed to issue them, drawing a sharper line between “regulated” and “wild west” crypto.

 

Ripple has gone as far as applying for a master account at the Federal Reserve, aiming to hold stablecoin reserves directly at the central bank - a move that would cement its legitimacy in the eyes of traditional finance.

 

But not all crypto companies want to become banks. Kraken, despite its banking ambitions, views itself as partnering with banks to provide services such as mortgages, rather than becoming a full-service lender itself.

 

Global crypto hubs: Who will survive?

 

While the US edges closer to regulatory clarity, the global crypto map is shifting rapidly. Jurisdictions like Dubai and Abu Dhabi continue to attract crypto businesses with zero tax regimes and bespoke regulatory frameworks, overseen by authorities such as the Virtual Assets Regulatory Authority (VARA). Yet, even there, compliance requirements are becoming more stringent in the wake of FATF scrutiny over money laundering risks.

 

Meanwhile, Europe is moving forward with its landmark MiCA regulation, which is set to bring unified licensing and oversight to crypto players across the EU. This could help solidify cities like Paris and Frankfurt as future European crypto hubs.

 

Hong Kong is trying to regain its crypto leadership by offering clear licenses and rules for exchanges, but tensions with mainland China still cast a shadow. Singapore, once seen as a crypto haven, has taken a more cautious stance, tightening retail access after high-profile collapses like Terra/Luna.

 

Ultimately, the next wave of crypto hubs will be those able to strike a delicate balance: offering regulatory certainty without stifling innovation. The US may well emerge as one of those hubs if it can pass stablecoin legislation and grant more national charters. Yet the race is far from over.

 

The road ahead

 

The message is clear: crypto companies are no longer content sitting outside the gates of traditional finance. Instead, they’re knocking, sometimes politely, sometimes forcefully, to be let in. The jurisdictions that open the doors while keeping fraud and instability out will define the future of global digital finance.

 

Yet the challenges remain immense. Policymakers worldwide are struggling to strike a balance between innovation, consumer protection, and financial stability. The next few years will be critical as lawmakers determine how to integrate cryptocurrency into banking regulations, tax codes, and systemic risk frameworks.

 

For crypto firms, the big question is whether to integrate with the traditional banking ecosystem or maintain their independence and focus on decentralised finance. Whichever path they choose, one thing is sure: the race to shape the next era of finance has only just begun.

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