Crypto companies are pushing hard into US banking just as Trump reopens the door. According to the Wall Street Journal, Circle, Paxos, Coinbase, and BitGo are now planning to apply for bank charters or other official licenses. This follows Trump’s vow to make America a “Bitcoin superpower,” a promise that has already started reshaping how crypto interacts with financial regulation. The White House has backed a new strategy that encourages crypto companies to work more closely with the banking system, and many in Congress are now pushing two bills that would force stablecoin companies to obtain legal licenses. Circle and BitGo want to become federally chartered banks. Coinbase and Paxos are considering their options too, eyeing everything from national trust charters to industrial bank licenses, which would let them hold deposits or issue stablecoins legally. Some want to operate like lenders. Others just want permission to issue a stablecoin under tight legal rules. One of those new tokens is already on the way. World Liberty Financial, the crypto company owned by the Trump family, recently announced USD1 , a stablecoin that would be backed by reserves and held in custody by BitGo. The Journal said BitGo is preparing to submit its charter application very soon. If approved, the company would be subject to much stricter oversight under federal law. Crypto companies apply for charters to meet compliance rules Only one crypto company has ever successfully landed a federal bank charter—Anchorage Digital. CEO Nathan McCauley, who secured the license in 2021, said the company has had to pour “tens of millions” into keeping up with compliance requirements. He added that the crypto industry now has to meet the “whole gamut of regulatory and compliance obligations that banks have.” In 2022, regulators slapped Anchorage with a consent order for failing to meet anti-money-laundering rules. Even so, interest in charters is growing. BitGo expanded its role in traditional finance when it became a custodian for BlackRock’s iShares Bitcoin Trust, working alongside Coinbase. BitGo also teamed up with Cantor Fitzgerald and Copper for a $2 billion Bitcoin-backed lending program. Tether, the largest stablecoin on the planet with a $145 billion market cap, is a major client of Cantor, which used to be run by Commerce Secretary Howard Lutnick. Circle’s USD Coin, which holds the number two spot behind Tether, has about $61 billion in circulation. These stablecoins hold value by keeping reserves in cash or short-term Treasurys, giving users something stable while moving in and out of volatile tokens like Bitcoin. Things weren’t always this smooth. After FTX collapsed and the US shut down Silvergate Capital and Signature Bank, traditional banks bailed out of crypto. Paxos and Coinbase struggled to find banks willing to hold their money or offer loans. But since Trump returned to the White House, regulators have loosened some restrictions. One major rule that used to require banks to get federal approval before doing anything crypto-related has already been rolled back. New guidance on how banks can work with crypto is expected later this year. Some big banks are already moving. In February, Bank of America CEO Brian Moynihan said he would launch a stablecoin if Congress finalized the legal framework. This month, US Bancorp confirmed it’s restarting its crypto custody service through a new deal with NYDIG, a bitcoin banking platform. Other firms are getting ready too. A group of global banks—including Deutsche Bank and Standard Chartered—has started looking into expanding their crypto operations into the US Cryptopolitan Academy: Tired of market swings? Learn how DeFi can help you build steady passive income. Register Now
