Ripple, Circle, BitGo Seek U.S. Banking Licenses to Expand Services

Amid a regulatory shift under the Trump administration, prominent crypto firms are making big moves to position themselves within traditional banking. These companies seek deeper integration into the broader financial ecosystem.

According to a Financial Times report, crypto giants like digital payment company Ripple, stablecoin issuer Circle, and digital asset platform Bitget are seeking national trust bank charters. This official licence would let them offer limited banking services. Concurrently, crypto exchange Kraken is gearing up to launch its bank cards by the end of next month. 

Stablecoins Enter the Financial Mainstream

For crypto companies, securing national trust status could be a game-changer. It means no more dealing with the patchwork of state licenses and opens the door to deeper ties with the mainstream banking system.

Notably, the expansion into banking occurs as U.S. lawmakers prepare to deliberate on proposed stablecoin regulations. If enacted, the legislation could more tightly integrate these digital tokens.

Designed to mirror the value of fiat currencies such as the U.S. dollar, stablecoins are emerging as a widely accepted component of the broader financial ecosystem.

Interestingly, the latest moves show that crypto companies want to do more than manage digital tokens. They are aiming bigger. This trend appears to correlate with increased executive optimism driven by the Trump administration’s crypto-friendly regulatory environment.

“This administration has indicated that they’d be open to charter applications in a way that the prior administration was not,” David Portilla, a partner at Davis Polk specialising in financial services, said.

Fintechs Embrace Crypto to Grow U.S. Presence 

National trust banks are authorized to hold assets and facilitate payments. However, they are not permitted to issue loans or accept direct customer deposits. Fintechs are eyeing crypto like never before. With digital banking and crypto getting closer, these companies are actively pursuing opportunities in crypto to drive up their U.S. customer base.

According to the report, Ripple CEO Brad Garlinghouse disclosed that the firm has filed for a master account at the Federal Reserve. Securing such an account would grant Ripple the ability to hold its stablecoin reserves directly with the central banking system.

Meanwhile, major U.S. banks are exploring ventures into crypto with joint stablecoins. The move shows the growing need to transform the crypto asset landscape and its incorporation with traditional finance.

The post Ripple, Circle, BitGo Seek U.S. Banking Licenses to Expand Services appeared first on Cointab.