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 J. Trump is a US-based entrepreneur, Pro-crypto Politician, and the 45th and 47th President of the United States of America. He understands the importance and needs of the modern fintech world, and people look up to him as a dominant pro-crypto leader.   Quick Facts   Full name Donald John Trump Birth 14-06-1946, New York, United States Nationality American Education BS from the University of Pennsylvania Known For Businessman, Pro-Crypto Politician   Once doubtful about Bitcoindominance, he said in a tweet in 2019, “I am not a fan of Bitcoin", but now has a significant amount of cryptocurrency holdings in his kitty. He has also signed an Executive Order to establish a Strategic Bitcoin Reserve, which highlights his commitment to the future of cryptocurrency.   Donald Trump - Career Highlights & Events   2016 – Elected as the 45th President of the United States from the Republican Party.   2017 – Signed the Tax Cuts and Jobs Act, impacting investment environments   2019 – Criticized Bitcoin and Libra on X, dubbing them as "not money"   2024 – Campaign signals potential openness to crypto-friendly reforms   2025 –  Elected as the 47th President of the United States from the Republican Party.   A meme coin, $TRUMP, is associated with Donald Trump, which is listed on the Solana blockchain platform. His family also backs World Liberty Financial (WLF), a crypto venture.     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.