Daniel Walker
Several major crypto companies — including stablecoin issuer Circle and crypto custodian BitGo — are reportedly preparing to pursue U.S. banking licenses, according to a recent report from The Wall Street Journal. The move signals a growing trend of digital asset firms transitioning toward traditional financial infrastructure to gain legitimacy and secure long-term growth.
The report also notes that Coinbase and Paxos, another stablecoin issuer, are exploring similar paths, indicating a potential industry-wide pivot toward regulated banking status.
Narrow Charters for Stablecoin Issuers Could Redefine Compliance Standards
Some crypto firms are specifically seeking limited-purpose licenses that would enable them to legally issue stablecoins under federal oversight. These licenses would come with stricter compliance obligations and ongoing regulatory scrutiny, potentially reshaping the stablecoin landscape.
As Bloomberg’s Matt Levine put it:
“The future may see crypto fully rebuild the banking system — regulations included.”
Learn: What is Blockchain?
Circle at the Center of Capitol Hill Stablecoin Debate
The timing of this regulatory pivot is no coincidence. Circle is currently engaged in a legislative standoff over proposed stablecoin laws in the U.S. Congress. Traditional financial giants like Bank of America are reportedly lobbying to revise the legislation, aiming to limit nonbank entities from issuing their own stablecoins, according to PRIME.
Ongoing Battle for Access to U.S. Financial Infrastructure
Crypto firms have historically faced significant roadblocks in connecting with core financial systems. A prominent example came in March 2024, when Custodia Bank — a crypto-focused financial institution — was denied a Federal Reserve master account after a lengthy application process. This rejection prevented the firm from obtaining direct access to the U.S. monetary system, a crucial tool for banking operations.
