Circle, BitGo, Coinbase, Paxos Go For US Banking Licenses

Major crypto companies, such as Circle, Coinbase, BitGo, and Paxos, are preparing to apply for banking licenses in the US.

According to the Wall Street Journal report dated 21 April 2025, these crypto companies are ready to capitalise on the current US government’s pro-crypto stance.

JUST IN: #BITCOIN AND CRYPTO GIANTS COINBASE, CIRCLE, BITGO, AND PAXOS ARE ALL APPLYING FOR US BANKING LICENSES

THIS IS NOT PRICED IN pic.twitter.com/CiZdHNmZOc

— The Bitcoin Historian (@pete_rizzo_) April 21, 2025

The companies are currently pursuing various types of banking licenses. It mostly depends on their specific business models. While some are seeking national trust or industrial bank charters, which would allow them to operate with capabilities similar to traditional banking institutions, others are focusing on more specialized licenses that would primarily enable stablecoin issuance and custody services.

“This represents a natural evolution for the crypto industry,” explains cryptocurrency analyst Sarah Johnson. “As these platforms mature and seek to serve a broader customer base, banking licenses provide the regulatory framework and customer protections needed to operate at scale within the existing financial ecosystem.”

So, who called this? Both Sygnum Bank CEO and Ripple President predicted that crypto companies would go for banking licenses sooner rather than later. They also predicted that US banks will eventually compete to offer crypto services.

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Deputy Group CEO Sygnum Bank Says, “There is no one to be afraid of anymore”

Talking about recent regulatory changes that allow US banks to approach further for the crypto offerings, Thomas Eichenberger, CSO and deputy Group CEO of Sygnum Bank, said that he foresees fierce competition between US banks fighting for the crypto onboarding clients.

Eichenberger said, “I think there will be a continued phase of of uncertainty, also until the regulatory framework in the US has been established clearly.”

“I think it’s a matter of fact that US banks are preparing to be able to offer crypto custody and crypto spot trading services anytime soon,” he added.

Eichenberger expects most of the US banks, if not all, to want to tap into crypto very clearly.

“I don’t expect only a shift from US banks wanting to to offer these services and enter this market, but also large international banks that are incorporated outside of the US but have a US business. I think some of them may have had their strategic plans in place to offer crypto-related services but have been afraid that at some point they will be gone after by any of the US regulatory authorities, so they held back. But now I think there is no one to be afraid of anymore, in terms of regulatory authorities worldwide. So I think many of the large international banks will launch this year,” explained Eichenberger.

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“Game On In the US,” Says Ripple President: Discusses Progress Of Crypto Bills

Talking about regulatory clarity in the US this year, Ripple President Monica Long recently said, “I think we are finding the right balance all over the world. I think that there’s probably healthy tension there and and we kind of need to put some rules in place and put them into practice to see what wrinkles need to be ironed out.”

Commenting on the progress of crypto bills in the US, Long said, “In terms of crypto legislation, they seem to be furthest along. I know there’s also crypto market infrastructure bills in progress. Those do seem to be farther along. Also in the US, I would say another change with this within this year really is the acceleration of ETFs. It’s a big deal if the US, largest global economy, largest capital market, is a player on the field now.”

According to her, Ripple saw business acceleration happen almost overnight from the election “where the engagement from banks in the US changed like a light switch flipped.”

“I think the more banks, the more distribution,” said Long. “The other big change is with SAB 121 going away. So this was the bulletin with the accounting rules that really restricted banks from holding crypto on their balance sheet. We certainly see much more interest in custody as well.”

“So, game on in the US,” said Long confidently.

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Key Takeaways

The pursuit of banking licenses by crypto giants could effectively bridge the longstanding gap between digital asset businesses and the traditional financial system.