Powell Acknowledges "Debanking" in Crypto, Graphite Network Bridges TradFi and DeFi

Federal Reserve Chair Jerome Powell's recent remarks have sparked a renewed interest in addressing the issue of "debanking" in the crypto industry. Powell acknowledged the growing number of cases where traditional financial institutions are cutting ties with crypto firms, a problem that has persisted for several years. While the Federal Reserve does not intentionally push banks away from working with digital asset companies, Powell admitted that regulations implemented before Trump's second term created unfavorable barriers.

In response to these concerns, Graphite Network has launched its Bank Integration Demo, providing financial institutions with the infrastructure needed to connect to Web3 securely and efficiently. The demo aims to help banks integrate crypto services in a compliant and risk-mitigated manner, enabling them to onboard crypto businesses securely, forge strategic partnerships, and demonstrate the practical benefits of blockchain in banking.

Graphite Network's solution addresses several challenges in the crypto industry, including reputation scoring, privacy-focused KYC, smarter risk management, and reputation-based banking. By implementing these features, Graphite Network aims to position banks at the forefront of the digital asset economy, rather than leaving them playing catch-up.

The company's 'One User, One Account' policy, Trust Scores, and transparent assessments help financial institutions evaluate the risk of crypto firms more accurately, reducing interactions with duplicate accounts and fraud exposure. Additionally, Graphite Network's off-chain, ZK-Proof-based KYC verification allows banks to comply with regulations without over-collecting personal information, meeting the privacy expectations of younger generations.

Graphite Network is also developing tagged addresses, which will enable banks and regulators to see exactly how funds are being used. This feature will help financial institutions distinguish between legitimate transactions and suspicious activity, adding another layer of security and accountability to crypto banking. Furthermore, reputation-based banking will allow banks to offer better, more personalized services by using a customer's financial history to reward trustworthy customers.

The barriers to crypto banking are quickly dissolving, with Trump's pro-digital stance and Powell's acknowledgment of debanking concerns. However, regulatory shifts from Washington are not enough; banks need infrastructure to securely integrate crypto. Graphite Network is delivering that solution, bridging traditional finance (TradFi) and decentralized finance (DeFi) to shape the future of banking.