The crypto industry is undergoing a quiet revolution — one where decentralized pioneers are stepping into the world of regulated finance. An increasing number of crypto companies are pursuing traditional banking licenses, a shift often summarized by the phrase: “If you can’t beat them, join them.” This strategic pivot isn’t about abandoning innovation; it’s about gaining legitimacy, access, and long-term sustainability.
Driven by new global regulations—especially around stablecoins—firms like Circle, Ripple, and Kraken are actively seeking bank charters. Their goal? To integrate crypto services directly into the regulated financial system on their own terms. This movement marks a turning point in the evolution of digital finance.
In this deep dive, we’ll explore why crypto firms want banking licenses, the types available, global regulatory landscapes, real-world case studies, and what this shift means for users, institutions, and the future of finance.
Why Crypto Companies Are Pursuing Bank Charters
For years, crypto firms struggled with banking access. Traditional banks often refused service due to perceived anti-money laundering (AML) risks or regulatory uncertainty. Now, many crypto-native companies are flipping the script by becoming regulated banks themselves.
Key motivations include:
🔗 Direct Access to Payment Infrastructure
A bank charter grants direct access to critical financial rails like Fedwire, ACH, and correspondent banking networks. This means faster, more reliable fiat on- and off-ramps.
“A banking license puts control back in the hands of crypto firms—not third-party intermediaries,” notes a leading fintech consultancy.
For example, Kraken Bank, operating under Wyoming’s SPDI charter, plans to offer USD deposit accounts and wire transfers—eliminating reliance on unstable banking partners that may freeze accounts arbitrarily.
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🛡️ Enhanced Trust and Credibility
A banking license signals rigorous oversight, capital requirements, audits, and consumer protections. For users and institutional partners, this is a powerful stamp of legitimacy.
As Jeremy Allaire, CEO of Circle, stated: “Becoming a national trust company is part of our commitment to the highest standards of trust, transparency, and compliance.”
Regulated status reassures investors that deposits are safeguarded and operations are transparent—key for attracting institutional capital.
🚀 Expansion into Financial Products
With a charter, crypto firms can launch mainstream financial services:
- Interest-bearing accounts
- Debit cards linked to crypto holdings
- Lending platforms
- Full-reserve stablecoin issuance
- Institutional custody solutions
Kraken Bank, for instance, can now offer full USD reserve backing, crypto custody, and payment services—all under one regulated roof.
📜 Regulatory Compliance and Stablecoin Laws
New laws worldwide are forcing stablecoin issuers into banking frameworks. In the U.S., proposed legislation like the STABLE Act and GENIUS Act would require stablecoins to be issued by banks or their subsidiaries. The EU’s MiCA framework classifies major stablecoins as e-money tokens, mandating licensing through Electronic Money Institutions (EMIs). Hong Kong’s upcoming stablecoin law will require approval from the HKMA.
To stay compliant—and competitive—crypto firms are proactively seeking charters before regulations fully take effect.
Types of Banking Licenses Available to Crypto Firms
Crypto companies aren’t aiming for one-size-fits-all solutions. They’re choosing charters tailored to their business models:
🏦 Full Commercial Bank Charter
Grants full banking powers: deposits, lending, payments. Rarely pursued due to high capital and compliance demands. Switzerland’s Sygnum Bank and SEBA Bank operate under full FINMA banking licenses.
🌐 Wyoming SPDI (Special Purpose Depository Institution)
A U.S.-only hybrid model allowing crypto firms to hold deposits and provide custody—but not make loans. Requires 100% reserve backing. Kraken Bank and Custodia Bank use this model. However, SPDIs lack FDIC insurance.
🏛️ OCC National Trust Charter
Issued by the U.S. Office of the Comptroller of the Currency (OCC), this allows firms to act as trust banks—managing reserves and providing custody—but not accept demand deposits. Anchorage Digital was the first crypto firm to receive this charter in 2021. Circle is currently applying for one.
💳 EMI (Electronic Money Institution) License – EU
Under MiCA, stablecoin issuers must obtain an EMI license in an EU member state. Circle holds one in France for its euro-backed stablecoin. EMIs must maintain 1:1 reserves and undergo regular audits.
🔄 VASP / Money Transmitter Licenses
These allow crypto trading and transfers but don’t confer banking rights. Most crypto firms hold multiple VASP or money transmitter licenses across jurisdictions (e.g., NYDFS BitLicense, Singapore’s PS Act).
👉 See how next-gen financial platforms are redefining access to global markets.
Global Regulatory Landscape
The push for crypto banking is a global phenomenon—with distinct regional approaches:
United States
Wyoming’s SPDI model has become a blueprint. The OCC has shown openness by approving Anchorage’s charter and lifting prior restrictions. Ripple and Circle have filed for federal trust charters. Meanwhile, the Fed has signaled support by ending “reputational risk” denials for master account access—though hurdles remain (e.g., Custodia’s rejected Fed application).
European Union & UK
MiCA mandates EMI licensing for stablecoin issuers. Kraken holds a full VASP license in Ireland. Traditional banks are now entering the space—some applying to issue their own stablecoins. The UK treats stablecoins as e-money, requiring FCA authorization.
Switzerland
A pioneer in crypto banking. FINMA granted full licenses to Sygnum and SEBA in 2019. These banks offer asset management, brokerage, and tokenized securities—all under strict AML rules. In 2025, AMINA Bank became the first regulated bank to support Ripple’s RLUSD stablecoin.
Asia: Hong Kong & Singapore
Hong Kong’s new stablecoin law requires HKMA licensing with strict reserve rules. Singapore’s MAS mandates 100% high-quality reserves for stablecoins but hasn’t issued new digital bank licenses since 2020.
Middle East: UAE & Beyond
Dubai’s VARA and ADGM regulate crypto firms under clear frameworks. Ruya Bank launched as the world’s first Sharia-compliant digital bank offering crypto services.
Case Studies: Crypto Firms Going Fully Regulated
Kraken Bank (Wyoming SPDI)
First major exchange to secure a state banking charter. Offers USD accounts, crypto custody, and wires—all with 100% reserves. Not FDIC-insured but audited regularly.
Anchorage Digital (OCC Trust Charter)
First federally chartered crypto bank. Provides institutional custody under full regulatory oversight.
Circle (OCC Trust Application)
Seeking to launch “First National Digital Currency Bank” to manage USDC reserves directly under federal supervision.
Ripple (OCC Application + RLUSD)
Applied for a national bank charter in 2025 while launching its own U.S. dollar-backed stablecoin, RLUSD—now supported by Swiss-licensed AMINA Bank.
Coinbase (Federal Charter Consideration)
Publicly exploring a federal banking license to integrate fiat savings with its exchange platform.
Regulatory Drivers Behind the Shift
- Stablecoin laws treat digital dollars like bank deposits.
- Payment system access reforms allow crypto firms into Fedwire.
- AML/KYC requirements now mirror traditional finance.
- Global integration efforts push central banks toward tokenized assets.
Benefits and Risks: Users, Institutions & Financial Systems
| Stakeholder | Benefits | Risks |
|---|---|---|
| Retail Users | FDIC-like security (in some cases), interest accounts, debit cards | Loss of privacy, no FDIC in SPDI cases |
| Institutions | Trusted custody, regulatory clarity | High compliance costs, operational risk |
| Financial System | Faster payments, greater inclusion | Systemic risk if large crypto banks fail |
FAQs
Q: Do crypto banks offer FDIC insurance?
A: Not always. Wyoming SPDIs like Kraken Bank do not have FDIC coverage. Customers should verify protection levels before depositing.
Q: Can crypto banks lend money?
A: It depends on the charter. Full commercial banks can lend; SPDIs and trust banks typically cannot—they must hold 100% reserves.
Q: Why don’t all crypto firms get bank licenses?
A: The process is costly and complex—requiring millions in capital, robust compliance teams, and ongoing audits. Smaller firms often partner instead.
Q: Are stablecoins safer if issued by a bank?
A: Yes. Bank-issued or bank-managed stablecoins (like USDC under Circle’s planned trust) have higher transparency, audit requirements, and reserve backing.
Q: Will traditional banks disappear due to crypto banks?
A: Unlikely. More probable is collaboration—traditional banks using licensed crypto firms for digital asset services.
Q: Can I use a crypto bank like my regular bank?
A: Increasingly yes—many offer USD accounts, ACH transfers, interest earnings, and debit cards tied to digital assets.
👉 Explore how the next era of banking is blending crypto innovation with financial security.
This convergence isn’t just about compliance—it’s about building a more inclusive, efficient, and resilient financial system. As regulations evolve and technology advances, the line between “crypto” and “banking” will continue to blur—ushering in a new age of digital finance.