The Trump administration's regulatory shift is accelerating the integration between traditional financial institutions and the cryptocurrency sector. Several crypto firms, including Coinbase, BitGo, Circle, and Paxos, are exploring or preparing to seek U.S. banking licenses as lawmakers weigh new rules for stablecoins. This comes as the Federal Reserve recently removed a key hurdle, no longer requiring banks to get prior approval for crypto activities. Meanwhile, major banks such as Bank of America and Standard Chartered are evaluating the issuance of stablecoins, with Bank of America signaling interest if Congress approves stablecoin legislation. Fidelity, PayPal, and Stripe are also expanding their presence in digital asset services, indicating a growing alignment between fintech, crypto, and established banking.
Firms like Circle are working with banks, including Santander and Deutsche Bank, to build payment systems that may compete with existing cross-border networks. Startups such as World Liberty Financial—backed by President Trump and his sons—are entering the market with plans for new stablecoins. Stripe has begun testing cross-border stablecoin payments, while PayPal now offers returns on stablecoin holdings. BitGo CEO Mike Belshe told Yahoo Finance, “Some of the traditional banks, they're going to embrace and start offering crypto-related products directly. We're also going to see crypto moving more towards traditional finance as well, which is crypto companies like BitGo offering more traditional services."
