Crypto-Friendly Banks Return to U.S. as Political Climate Shifts

Crypto-friendly banks are making a comeback in the U.S. financial landscape after years of absence. This resurgence is driven by large global banks such as Deutsche Bank and Standard Chartered, which are exploring ways to re-enter or expand their cryptocurrency-related businesses in the U.S. The renewed interest in financial services for cryptocurrency is fueled by a more accepting political and financial environment towards digital assets.

Following the collapse of FTX and the closure of major crypto-specific banks, foreign financial institutions have been cautious. However, the stated intent of Donald Trump to make America a destination for cryptocurrency and the banks that support it has motivated traditional financial institutions to re-engage with the cryptocurrency space.

Many traditional finance entities are once again stepping into the crypto arena. This revival is led by Deutsche Bank and Standard Chartered, supported by the broader institutional ecosystem. The goal is to tap into the growing opportunities around crypto custody, stablecoins, and blockchain-based settlements. The timing of this move coincides with a relative stabilization of the crypto market and improving regulatory clarity, which is giving banks more confidence to participate. While specifics are still under wraps, the move indicates a broader shift back to crypto integration, particularly through partnerships and licensing strategies.

In addition to the interest from legacy banks, several sizeable crypto firms—BitGo, Circle, Coinbase, and Paxos—are reportedly looking to apply for bank charters in the U.S. If granted, these charters would allow these firms to be the first of many crypto-friendly banks that offer the agility of fintech along with the legitimacy of being regulated. Currently, only Anchorage Digital holds a U.S. federal bank charter as a crypto-native firm, but it has faced its own set of challenges.

Anchorage Digital spent tens of millions to become compliant but is now under the radar of the Department of Homeland Security and the El Dorado Task Force, the agency investigating financial crimes and money laundering. The firm has denied any wrongdoing, stating that the reporting on the investigation contained “speculative” elements without any details as to the nature or scope of the investigation. This reflects the difficulty crypto firms face in fully integrating into traditional banking entities in the U.S.

As the only federally chartered crypto bank, Anchorage Digital feels the pressure of being both a pioneer and a target of scrutiny. The compliance-heavy road to becoming a crypto-friendly bank in the U.S. is evident in Anchorage Digital's experience. As both newcomers and incumbents race to establish legitimacy, innovation, and scale in crypto finance, the next few years will likely inform the contours of a digital banking effort globally. The emergence of crypto-friendly banks will change the global finance landscape, but compliance, public confidence, and operational risk will be significant obstacles. Only organizations that normalize compliance and embrace risk identification and management will readily move forward with the next phase of crypto-banking.