Deutsche Bank, Standard Chartered Eye U.S. Crypto Expansion Amid Policy Shifts

Deutsche Bank and Standard Chartered are exploring the possibility of expanding their operations into the U.S. crypto market. This move comes as traditional financial institutions are increasingly looking to venture into the growing sector of digital currencies. The renewed interest in crypto by these banks indicates a shift in attitude towards digital currencies, following a period of retreat after the collapse of FTX and the shutdown of several traditional banks that once served the crypto industry.

The banks' plans for expansion follow a period of heightened volatility across the crypto market, triggered by the FTX collapse. However, the sector is receiving new momentum with Donald Trump’s plans to make the United States more crypto-friendly. This renewed interest from traditional finance suggests that the sector is beginning to change its stance on digital currencies, with leading financial institutions now more open to new financial technologies, including cryptocurrencies.

Circle, Paxos, BitGo, Coinbase, and other crypto firms have also shown interest in obtaining bank charters or licenses. These firms are seeking to occupy a larger portion of the regulatory space to improve their legitimacy in the financial chain. Anchorage Digital, the only Bitcoin company in the United States to have a federal bank charter, continues to attract attention. The firm has been under investigation by the U.S. Department of Homeland Security, with the El Dorado Task Force, which specializes in money laundering and financial crimes, reportedly involved in the probe.

Anchorage Digital has refuted any wrongdoing, dismissing the reports as not credible and based on speculation. The firm has also stated that specific information about the probe and its extent has not been provided. Despite the scrutiny, the increasing involvement of traditional banks in the U.S. crypto market points to a significant shift in the financial landscape. The application of legislation and the attention of institutional investors pose new challenges to the sector’s changing market position, raising questions about the future of cryptocurrencies and their integration into the conventional financial sector.