Encryption companies accelerate banking integration: Driven by favourable information, industry giants like Ripple compete for TradFi.

Inspired by the friendly stance towards digital assets displayed by the Trump administration, crypto assets companies are rapidly expanding into traditional banking services. From the upcoming launch of crypto debit and credit cards by CEX to leading companies like Ripple, Circle, and BitGo actively applying for a national trust bank license in the U.S., the entire industry is significantly shedding its original "anti-establishment" color and accelerating its embrace of financial compliance and mainstream acceptance.

This strong momentum marks the entry of the integration of Crypto Assets and mainstream finance into a new stage. Its core driving forces are: the attractiveness of federal-level banking licenses, the expected promotion of stablecoin-specific legislation (especially the Genius Act), and the overall regulatory environment shifting towards encouraging the integration of digital assets into the U.S. financial infrastructure. This reflects the increasing confidence of executives in the crypto industry following the U.S. government's increased openness towards digital assets, with corporate strategies shifting from purely providing digital asset services to offering a broader range of comprehensive financial services.

Core Dynamics: Giants like Circle Compete for Banking Licenses

• CEX: Launching Crypto Asset Debit Cards for "Natural Integration"
  • According to the Financial Times, CEX co-CEO Arjun Sethi described this expansion as a "natural integration." The exchange plans to officially launch debit and credit cards supporting Crypto Assets payments at the end of this month, providing users with a more convenient fiat-Crypto Assets exchange channel and everyday consumption scenario applications.
• Circle et al: Applying for a national trust bank license, seeking deep Compliance
  • The well-known stablecoin issuer Circle in New York clearly stated that obtaining the national trust bank license issued by the Office of the Comptroller of the Currency (OCC) will be a "key step" in helping to more deeply embed cryptocurrency into the mainstream financial system.
  • Currently, among crypto companies, only Anchorage Digital holds such national-level banking licenses. Max Bonici, a partner at Davis Wright Tremaine, pointed out: "This is in stark contrast to the starting point of many crypto companies, which initially claimed, ‘We don’t need banks, we don’t need laws, we transcend everything.’ Now embracing regulation and applying for licenses has become a new trend in the industry."

Why turn to traditional banking services? Licensing advantages and stablecoin legislation are key

The National Trust Bank license brings significant advantages to crypto companies:

1. Payment Processing Capability: Allows for the processing of payment transactions.
2. Regulatory Simplification: Exempting the cumbersome requirement of applying for licenses individually in each state significantly reduces Compliance costs.
3. System Access Convenience: Significantly improves the ability to access traditional financial systems (such as payment networks, clearing systems).
   • Restrictions: Institutions holding such licenses are not allowed to provide loans or accept direct deposits from customers.

This round of banking wave coincides with Washington's upcoming debate on the stablecoin regulatory bill. The bill aims to bring dollar-pegged stablecoins under a regulatory framework that is closer to traditional finance:

• The Genius Act Strengthens Regulation: The proposed act will strengthen reserve requirements for stablecoin issuance and may require a closer tie to endorsements by the U.S. Treasury.
• Issuance Entity Restrictions: According to the proposal, stablecoins will only be allowed to be issued by non-bank institutions licensed by the OCC and regulated banks.
• Ripple Seeks Direct Connection to the Federal Reserve: Ripple CEO Brad Garlinghouse revealed that the company has applied for a Master Account with the Federal Reserve, aiming to directly hold its stablecoin reserves at the Federal Reserve to enhance transparency and trust.

Bilateral Integration: Traditional Financial Technology Giants Are Also Accelerating Their Embrace of Crypto

The integration of Crypto Assets and traditional finance is bidirectional:

• Robinhood: Crypto Assets Driven Revenue, Plans to Launch Banking Services
  • Last year, more than half of its transaction revenue came from the Crypto Assets stock and crypto trading platform Robinhood, which plans to launch banking services this fall.
  • CEO Vlad Tenev's goal is to provide comprehensive financial services, including tax planning and estate planning, to build a one-stop financial platform.
• Revolut: Crypto Assets trading contributes significantly, coveting a US banking license
  • The London-based fintech company Revolut derives a large portion of its revenue from crypto assets trading, with long-term goals that include obtaining a U.S. banking license.
• Klarna: CEO plans to transform into a crypto company
  • Klarna's CEO Sebastian Siemiatkowski has publicly stated that the plan is to transform this consumer credit company into a crypto enterprise.
• Traditional Big Banks are poised for action:
  • Large traditional banks, including Bank of America, are preparing to issue their own bank-backed stablecoins once the US stablecoin regulatory framework is finalized.