The Next Big Crypto Players? U.S. Banks Are Making Their Move

The U.S. crypto market is heating up again, and this time, it’s not just retail traders. With President Donald Trump Donald Trump Donald Trump is an American former president politician, businessman, and media personality, who served as the 45th president of the U.S. between 2017 to 2021. Trump earned a Bachelor of science in economics from the University of Pennsylvania in 1968. Trump won the 2016 presidential election as the Republican Party nominee against Democratic Party nominee Hillary Clinton while losing the popular vote. As president, Trump ordered a travel ban on citizens from several Muslim-majority countries, diverted military funding toward building a wall on the U.S.–Mexico border, and implemented a family separation policy. Trump has remained a prominent figure in the Republican Party and is considered a likely candidate for the 2024 presidential election President ’s return, hopes for clearer regulations are reigniting interest across Wall Street. But here’s where it gets interesting – major banks, once hesitant about crypto, are now making big moves into digital asset services.

Why now? Let’s understand.

Major Banks Move into Crypto Custody

Crypto reporter Yueqi Yang recently highlighted the growing interest of U.S. banks in crypto, especially in custody services. Some of the country’s largest financial institutions are taking advantage of regulatory shifts under Trump to enter the market.

Citigroup is reportedly considering offering crypto custody services, according to The Information. This follows the bank’s successful proof-of-concept project, where it issued and stored tokenized private equity funds on a blockchain network.

With $2.4 trillion in assets, Citigroup is now joining other major financial firms in the expanding digital asset custody space.

Global Banks Expand Their Crypto Services

Several major banks worldwide are also strengthening their crypto offerings:

• BNY Mellon is broadening its custody services beyond Bitcoin and Ethereum ETFs.
• Standard Chartered has launched a digital asset custody service in Dubai.
• HSBC is planning an institutional-grade custody solution.
• Crédit Agricole and Banco Santander secured regulatory approval in France for their joint crypto custody venture.
• State Street, which manages $44.3 trillion in assets, has partnered with Taurus to provide crypto custody and tokenization services for institutional investors.

Regulatory Delays Slow Progress

While Coinbase is in talks with banks to offer custody and trading services, many institutions are still waiting for approval from the Federal Reserve and the New York Department of Financial Services. This regulatory delay is preventing them from fully entering the crypto market, according to The Information’s Yueqi Yang.

Federal Reserve Chair Jerome Powell recently stated that U.S. banks with strong risk management could serve crypto clients. However, concerns remain over “debanking” linked to new technologies. Powell has promised to work with Congress to address these challenges.

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More Banks Eye Crypto Opportunities

Despite regulatory hurdles, more banks are exploring crypto services. In January, Morgan Stanley-backed E-Trade hinted at entering the market, while Goldman Sachs said it would consider digital asset operations if regulations allow.

With more financial giants stepping into crypto, the industry’s expansion hinges on regulatory clarity in the coming months.

For now, the doors to crypto banking are cracking open. How wide they swing depends on regulators.