Crypto Firms Chase Banking Licenses Like It’s the Last Slice of Pizza 🍕💸

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  • Circle and BitGo gearing up to become your new, slightly less shady, banks.
  • Trump’s policies basically sent crypto and banks back to couple’s therapy.

So, apparently, some fat cats in the crypto jungle—Circle and BitGo among them—have decided that hey, why not actually get a banking license in the U.S.? Because nothing screams “legit” like filling out tons of paperwork and jumping through regulatory hoops. Banks and crypto firms are basically trying to hold hands again after years apart, like an awkward reunion at your high school prom.

Old flames rekindled: Crypto & Banks in the Trump Era’s Weird Romance

Remember when FTX crashed and basically gave the crypto world a big ol’ wedgie? Yeah, and then Silvergate and Signature Bank threw in the towel in 2022, leaving crypto firms locked outside the financial playground. The banks shut the door, slammed a “no crypto allowed” sign, and went home.

But hold the drama—now the big banks want back in. According to the Wall Street Journal (because who else would spill the tea?), banks are opening their wallets and an extra window for their crypto pals. Crypto companies want to flex their banking muscles, traditional banks want a taste of that blockchain buzz. It’s a meet-cute but with more compliance forms.

Even international banks like Deutsche Bank and Standard Chartered dabble in crypto overseas first—classic “try before you buy” scenario. Crypto was ghosting them until, surprise, the banks finally got their act together and made their offering crypto-friendly. Apparently, the regulatory fog is thinning, which is always nice.

Oh, and remember the Trump administration? They were the crypto industry’s weird cheerleaders. U.S. lawmakers and regulators swapped out their skepticism for something resembling a warm hug. This new lovefest between banks and crypto is making everyone hold hands and sing kumbaya about partnerships and confidence.

The Office of the Comptroller of the Currency threw a bone to Paxos in 2021 by handing them a federal banking charter. That’s right, Paxos is now a real-ish bank and they buddy up with PayPal—a collab so shiny it blinds regulators. This was only the third banking license ever given to a digital asset company, which basically means crypto’s been invited to the grown-up table.

Doing the Big Bank Dance: Crypto Firms Want In on Your Savings Account

Circle and BitGo are like that friend who goes all-in on a new hobby—they want full banking charters, pronto. Imagine your crypto wallet also giving you a mortgage. Funky. They promise deposits, loans, the whole shebang—like actual banks, just with more blockchain sparkle.

Not to be outdone, Coinbase and Paxos are eying the same prize. They figure having a banking license will make grandma trust their apps and regulators breathe a little easier. Win-win!

Meanwhile, Congress is busy drafting new laws to make stablecoins official and tightly regulated. If these passes, stablecoins will play by Big Bank rules—lots of licenses, lots of oversight—while making the crypto playground safer and easier for everyone to buy that NFT or whatever.

Big players like Bank of America and U.S. Bancorp are peeking into the crypto sandbox too, thinking maybe it’s time to get back in the game. The crypto hype is like an irresistible party invitation they just can’t ignore.

In the end, traditional finance isn’t exactly winning the popularity contest against slick crypto startups. With new regulations and unexpected friendships blossoming, crypto is getting a serious glow-up, inching closer to mainstream banking. Who knew?

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2025-04-21 23:23