Banks Redefine Finance: Crypto Integration Drives Systemic Change

Financial services organizations are increasingly embracing cryptocurrency, signaling a shift in institutional confidence toward digital assets. LevelField Financial Inc., a crypto-focused firm, recently secured approval from the Illinois Department of Financial and Professional Regulation to acquire Chicago-based Burling Bank, marking a pivotal step in its strategy to integrate cryptocurrency services into traditional banking. The move underscores a broader trend as regulators and financial institutions recalibrate their approaches following the collapse of crypto-friendly banks like Silvergate Capital and Signature Bank in 2023.

LevelField's acquisition of Burling Bank, valued at up to $70 million, is pending final approval from the Federal Reserve Board. If completed by year-end, the deal will transform Burling into a full-service bank offering deposit accounts, loans, and custody services tailored to digital assets. CEO Gene Grant II emphasized the need for systemic change in financial services, stating, "Financial services must be changed from the inside, and unlike other industries, outside disruptors barely move the needle." The combined entity will retain FDIC insurance for fiat deposits while introducing products like Bitcoin- or Ethereum-secured credit cards and term loans. LevelField is also negotiating with card networks to issue rewards in cryptocurrencies, further blurring the line between traditional and digital finance.

The regulatory landscape for crypto banking has evolved significantly. After the 2023 collapses, which erased two major crypto-friendly institutions, regulators have adopted a more cautious yet open stance. LevelField's success in securing state approval reflects this pivot. The firm previously attempted to acquire Burling in 2023 but withdrew amid the sector's turmoil. Its renewed effort in December 2024 coincided with President Donald Trump's election promise to position the U.S. as the "crypto capital," suggesting political momentum for the industry. Trump's recent dinner with Wall Street executives, including JPMorgan Chase CEO Jamie Dimon, highlights ongoing dialogue between crypto advocates and traditional finance leaders.

Beyond the U.S., institutional-grade crypto adoption is gaining traction globally. Singapore's SGX Derivatives launched Bitcoin and Ethereum perpetual futures in November 2025, targeting institutional investors with regulated, exchange-cleared contracts. This move aligns with a broader $187 billion daily average volume in crypto derivatives, predominantly concentrated in Asia. SGX's initiative, benchmarked to CoinDesk indices, aims to bridge traditional finance and digital assets by offering transparency and scalability.

Meanwhile, fintech integration in Southeast Asia faces hurdles. Grab and GoTo, two regional superapp giants, have struggled to consolidate their fragmented digital financial services. Despite growing revenue-Grab's Superbank reported a 20% sequential rise in deposit customers-both companies remain reliant on ride-hailing and food delivery for most of their income[ https://www.forbes.com/sites/zennonkapron/2025/11/17/why-it-may-be-too-late-for-a-grab-goto-merger/]. Regulatory complexities and user preferences for specialized platforms have slowed the superapp vision, illustrating the challenges of merging crypto and traditional services in a competitive market.

The LevelField-Burling acquisition and SGX's perpetual futures represent milestones in crypto's institutionalization. As financial services firms navigate regulatory shifts and market demands, their strategies will likely shape the future of digital currency adoption. With fiat-backed crypto products, institutional infrastructure, and political support converging, the sector appears poised for a new phase of integration-though challenges in user adoption and regulatory alignment persist.