Trump Administration Policy Spurs Crypto Company and Fintech Firm Interest in Becoming Banks

Crypto and fintech companies are taking a second look at trying to expand their business by getting banking licenses that seemed out of reach before regulations were eased.

Law firms that represent crypto companies have stated that their clients are optimistic and have been asked what the process would look like to become a bank.

The advantage to becoming a bank is not only cost but credibility in terms of customers. Companies may also have the advantage of taking deposits instead of borrowing.

Cryptocurrency investors rarely keep their entire assets with a crypto trading company because it does not have traditional bank services.

Also, companies are also looking at acquiring a community bank in order to receive a national bank charter. Analysts expect this to be a major trend beginning in 2025.

Before Trump took over, only about five companies a year applied for a new bank charter in the previous decade.