As traditional banks continue giving crypto companies the cold shoulder, industry giants Coinbase and Circle are taking matters into their own hands. They’re gunning for U.S. bank charters, aiming to join the very club that’s been shutting them out. Talk about if you can’t beat ’em, join ’em.
The push comes after a brutal 2023 that saw crypto-friendly banks collapse like dominoes. Circle’s recent IPO filing demonstrates their commitment to mainstream legitimacy. Now these digital asset firms want the keys to the regulated financial kingdom – complete with deposit-holding powers and the ability to custody their own stablecoin reserves. No more begging traditional banks for basic services.
After crypto banks crumbled in 2023, digital asset firms are seeking bank charters to control their own financial destiny.
It’s not just about survival. Both companies see bank charters as their golden ticket to legitimacy. Regulators have made it crystal clear: if stablecoins want to play in the big leagues, they need proper oversight. Just like banks. Just like money market funds. No more wild west crypto shenanigans. While traditional banks process transfers in days, Solana transfers complete in under 10 seconds, highlighting the efficiency potential of crypto banking.
The timing is interesting. Coinbase and Circle recently dismantled their joint venture Centre, but they’re still tight on USDC operations. Both firms are lobbying hard, sweet-talking everyone from the OCC to the Fed. They’re pushing for clearer rules on bank-crypto partnerships, probably hoping to smooth their path to becoming banks themselves.
Getting a charter would be a game-changer. Direct access to federal payment systems. FDIC insurance. The works. These companies could finally offer the full menu – lending, custody, trading – all under one regulated roof. The arrival of Paul S. Atkins as SEC chairman could help accelerate their banking ambitions.
Traditional banks might actually have to compete with the crypto crowd they’ve been snubbing.
But here’s the kicker: this isn’t just about Coinbase and Circle anymore. It’s about whether crypto can actually clean up its act and play by Wall Street’s rules. The upcoming Senate Banking Committee hearing on “debanking” should be interesting.
Who knows? Maybe the next time you need a loan, you’ll be walking into Coinbase National Bank. Stranger things have happened in finance.
