Global Banks Return to Crypto Space
Some major banks, including Deutsche Bank and Standard Chartered, is mulling opening up their United States crypto business, The Wall Street Journal reported, citing sources. This newfound interest is a reversal of sentiments as mainstream financial institutions gradually return to the crypto space after taking a step back.
The FTX collapse in late 2022, along with the shutdown of crypto-friendly banks like Silvergate and Signature, prompted many global banks to reassess their exposure to crypto. But recent developments — including a more positive tone from some political leaders — have prompted renewed exploration of U.S.-based crypto opportunities.
U.S. Becomes a Focal Point for Crypto Growth
The United States is still a pivotal market for crypto asset growth, and regulatory consistency is increasingly recognized as the decisive factor in lasting institutional involvement. There are indications that Deutsche Bank and Standard Chartered are assessing how to get involved more materially in U.S. crypto marketplaces, albeit without any such announcement.
Part of the interest stems from political tailwinds. Former President Donald Trump’s promise to support a pro-crypto policy environment if he is reelected has encouraged hopes among financial institutions to navigate the U.S. regulatory environment more effectively.
Crypto Firms Seek Bank Licenses
In the meantime, crypto-born firms like BitGo, Circle, Coinbase, and Paxos reportedly are preparing to file for bank charters or licenses. Gaining such licenses would enable them to do business with less regulatory red tape and expand their financial services.
Anchorage Digital is presently the sole firm to possess a federal bank charter in the US. It has spent tens of millions of dollars meeting standards — an effort now under scrutiny.
Anchorage Under Investigation
Anchorage is being investigated by the U.S. Department of Homeland Security’s El Dorado Task Force, which probes money laundering and financial crimes, according to Barron’s. The firm denies any wrongdoing, but the investigation adds nuance to the emerging U.S. crypto-banking dynamic.
