- Decision aims to deepen the firms’ ties with the American banking systems.
- Major banks and crypto companies are pivoting towards crypto integration under the changing regulatory tide.
Crypto giants, Circle, Coinbase, and BitGo, are looking to apply for a banking license in the United States, according to reports.
This is a decision that aims to deepen the companies’ ties with the U.S. banking systems. The calls align with Trump’s move to make America a “Bitcoin Superpower,” which is already influencing how crypto interacts with financial regulations.
Coinbase is currently exploring different licensing options, including the National Trust Charters and Industrial Bank Licenses. Meanwhile, Circle and BitGo aim to become federally chartered banks. It is a revolutionary shift, as obtaining these licenses would allow them to legally hold deposits.
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Chasing Legitimacy: Crypto’s Next Big Leap
According to industry experts, crypto giants like Coinbase, Circle, and BitGo applying for a bank charter is a major step towards revolutionizing the crypto industry. If approved, these companies would operate as conventional financial institutions, providing services such as stablecoin lending and issuance.
BitGo recently announced that World Liberty Financial has chosen them to hold custody of its stablecoin, USD1. Mike Belshe, BitGo Chief Executive Officer, said in a statement: “Our clients demand both security and efficiency, and this partnership with WLFI delivers both – combining deep liquidity with the assurance that reserves are securely held and managed within regulated, qualified custody.”
The change aligns with the new trend where crypto firms are seeking to gain legal and regulatory clarity with the US financial system. The mandate is expected to enhance their legitimacy and expand their services to a much wider audience.
