US Crypto Firms Seek Bank Charters Amid Growing Industry Expansion
US crypto and fintech firms are pursuing national or state bank charters to operate as banks, influenced by recent regulatory shifts. This trend aims to enhance credibility, reduce operational costs, and enable deposit acceptance.
Bank Charter Benefits
- Enhances credibility and boosts crypto adoption
- Allows operation with lower capital requirements
- Enables acceptance of deposits, reducing borrowing costs
From 2010 to 2023, only five bank charters were approved annually, compared to 144 between 2000 and 2007. Recent changes in administration may lead to a more lenient regulatory approach. Notably, SmartBiz recently became the first fintech firm to obtain a bank charter since 2021.
Industry Developments
Bedrock has partnered with Pentabase to expand its presence in the Korean market, while a Coinbase and EY-Parthenon survey indicates over 83% of institutions plan to increase crypto asset allocations in 2025. More than 84% have invested in stablecoins.
Highlighted Projects
- Best Wallet Token ($BEST) – A non-custodial wallet attracting attention with its significant presale success.
- MIND of Pepe ($MIND) – An AI-driven token that identifies promising investments and learns from interactions.
- Tutorial ($TUT) – A token focused on educating users about cryptocurrencies and blockchain technology, with notable price growth.
Overall, the crypto industry is experiencing significant growth and increased institutional interest. Investors should conduct thorough research and consider diversification to mitigate risks.