Crypto Giants Move Toward U.S. Banking Licenses in Bid for Legitimacy

Some of the biggest names in crypto are now looking to secure a place inside the U.S. financial system.

Companies like Circle and BitGo are reportedly preparing to apply for banking licenses or similar regulatory approvals in an effort to move closer to the heart of traditional finance, according to The Wall Street Journal.

This marks a notable shift in strategy for the digital asset industry, which has long operated on the fringes of regulated banking. But after the collapse of FTX in late 2022, followed by the shutdown of crypto-friendly banks like Silvergate and Signature, the distance between crypto and conventional finance became a liability. With few banking partners left and increasing regulatory scrutiny, firms have struggled to operate smoothly in the U.S.

Now, players like Circle—known for its USDC stablecoin—and digital custodian BitGo are working to change that narrative. By obtaining federal licenses, they aim to legitimize their business models, gain more trust from regulators and institutions, and regain access to core financial infrastructure.

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If successful, these licenses could allow crypto companies to connect directly with the Federal Reserve’s payment systems, offer regulated custody services, and integrate stablecoin operations more tightly with fiat banking rails. It would also help them better meet compliance standards like anti-money laundering (AML) and know-your-customer (KYC) requirements.

This move reflects a broader evolution in the industry, as crypto firms begin aligning more closely with traditional financial systems. While regulatory approval could be a lengthy process, these applications signal a new phase—where compliance isn’t seen as a compromise, but a long-term strategy for survival, growth, and legitimacy.

Alexander Stefanov