Crypto-Friendly Banks Make a Comeback in the U.S.: Deutsche Bank, Standard Chartered, and Crypto Firms Eye Banking Charters

After years away, crypto-friendly banks are coming back to the U.S. financial landscape. Several changes are being driven by large global banks like Deutsche Bank and Standard Chartered, which are reportedly looking into ways to re-enter or expand their business relating to cryptocurrency in the U.S. According to the Wall Street Journal, the new interest in financial services for cryptocurrency is occurring because of a political and financial environment that has seemed more accepting of digital assets.

After many years of calculating their risks following the collapse of FTX and the closure of major crypto-specific banks, the foreign financial institutions are changing their course. Former President Donald Trump’s stated intent to make America a destination for cryptocurrency and banks that support it has also been motivation for more of these traditional financial institutions to interact and do business in, or with, the cryptocurrency space.

Wall Street and Traditional Finance Reconsider Crypto

After a period of withdrawal, many traditional finance entities are once again stepping into the crypto ring. The revival is not only being led by Deutsche Bank and Standard Chartered but is also supported by the broader institutional ecosystem. The desire is clear: tap into the growing opportunities around crypto custody, stablecoins, and blockchain-based settlements.

The timing coincides with a relative stabilization of the crypto market, and improving regulatory clarity 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.

Crypto Firms Eye Bank Charters

Besides 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., which would allow them, if granted, to be the first of many crypto-friendly banks that offer the agility of fintech along with the legitimacy of being regulated. Presently, only Anchorage Digital holds a U.S. federal bank charter as a crypto-native firm, but they, too, have not been without their hurdles.

Anchorage Digital spent tens of millions to become compliant, but it is also on the radar of the Department of Homeland Security and the El Dorado Task Force, the agency investigating financial crimes and money laundering.

Anchorage Digital Pushes Back Against Allegations

The investigation into Anchorage Digital raised eyebrows, and the firm vehemently denied it did anything wrong. A spokesperson said that the Barron’s article reporting on the investigation contained “speculative” elements without any details as to the nature or scope of the investigation. Either way, the investigation reflects how hard it is for crypto firms to fully integrate into a traditional banking entity in the US.

As the only federally chartered crypto bank, Anchorage Digital feels the pressure of being both a pioneer as well as the target of scrutiny. Even easier to monitor now, Anchorage Digital is a case in point of how compliance-heavy the road to being a crypto-friendly bank highway is in the US.

The Future of Crypto Banking

As both the newcomers and the incumbents are racing to establish legitimacy, innovation and scale in crypto finance will likely occupy the next few years, which could inform the contours of a digital banking effort globally. Just as we have seen come to fruition with chartered crypto-firms such as Anchorage Digital or chartered legacy banks like Deutsche Bank re-entering with crypto-focused segments, the emergence of crypto-friendly banks will change the global finance landscape.

However, 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.