Crypto Companies Secure Bank Licenses, Paving the Way for Explosive Expansion

Crypto just crashed the banking party—and brought its own vault.

The New Gatekeepers

Forget begging for scraps from traditional finance. A wave of crypto-native firms is now securing full banking licenses, flipping the script on the entire financial system. They're not asking for permission anymore; they're becoming the permission-givers.

Beyond the Wallet

This isn't about adding a 'deposit' button. It's a fundamental power shift. Licensed crypto banks can now offer interest-bearing accounts, issue debit cards directly tied to digital asset portfolios, and provide institutional-grade custody—all within a regulated framework. They're building a parallel system where your crypto isn't just an investment; it's your primary, functional capital.

The Regulatory End-Run

The strategy is brutally elegant. By becoming banks themselves, these companies bypass the endless, soul-crushing negotiations with legacy gatekeepers. Want to offer seamless fiat on-ramps? Need to facilitate corporate treasury management in stablecoins? As a licensed bank, you just... do it. It cuts through regulatory red tape like a hot knife through bureaucratic butter.

The Mainstream Money Magnet

This changes the game for institutional money. Big players have been circling crypto for years, held back by custody concerns and regulatory fog. A licensed, audited crypto bank acts as a beacon of legitimacy. It signals that the wild west days are over, replaced by a new frontier with clear rules—rules written, in part, by the pioneers themselves.

So, while traditional bankers fret over their net interest margin, crypto is building the bank of tomorrow—one that actually understands the assets it holds. Talk about a hostile takeover.

US-based cryptocurrency companies have been actively seeking bank licenses to expand their operations. This urgency has been driven by the changing regulatory landscape since the beginning of Trump’s administration. Companies are seizing the opportunities arising from this shift to quickly enhance their market presence.

BitGo and Ripple Bank Licenses

According to a report from WSJ, the cryptocurrency company BitGo has received conditional approval from the OCC to transition to bank status. The Office of the Comptroller of the Currency (OCC) has recently made several announcements that pleased cryptocurrency investors, the most significant of which is granting BitGo permission for a bank license.

With this approval, BitGo will convert its trust company registered in South Dakota into a trust bank with national coverage. This will authorize the company to custody certain non-deposit assets and offer products across the country without needing state-specific crypto approvals. The final approval is anticipated soon.

Many cryptocurrency companies are scrambling to obtain banking licenses in the US. Just as this article was being prepared, Bloomberg reported that Ripple$0.00000000000000 also received conditional approval to form the Ripple National Trust Bank. This milestone indicates a significant day for crypto companies awaiting bank licenses.

Despite these advancements, the XRP Coin remains stable. Bitcoin$0.00000000000000‘s value saw a $3,000 drop shortly after market opening, perpetuating concerns in the cryptocurrency market.