Circle and BitGo are preparing to apply for U.S. bank charters, according to a Wall Street Journal report.
The report also indicates that digital assets firms Coinbase (NASDAQ:COIN) and Paxos are exploring similar paths, driven by evolving stablecoin regulations and a shifting political landscape under the Trump administration.
This development marks a pivotal moment for the crypto industry, which is increasingly seeking legitimacy and access to the U.S. banking system.
Circle, the issuer of the USD Coin (USDC) stablecoin with a $61 billion market cap, and BitGo, a crypto custodian recently tied to the Trump family’s USD1 stablecoin, are leading the charge.
A bank charter would allow these firms to operate like traditional lenders, offering services such as deposit-taking and loan issuance.
BitGo, which also serves as a custodian for BlackRock’s iShares Bitcoin Trust, is reportedly close to submitting its application.
The pursuit of charters comes as Congress debates legislation that would require stablecoin issuers to hold federal or state licenses, a move that could formalize their role in the financial ecosystem.
Coinbase, a publicly traded U.S.-based crypto exchange, and Paxos, a stablecoin issuer with a preliminary bank charter approval from the U.S. Office of the Comptroller of the Currency in 2021, are also considering their options.
These firms are eyeing a range of licenses, from national trust charters to industrial bank licenses, which would enable them to issue stablecoins or hold deposits under stricter regulatory oversight.
The push for charters reflects a strategic effort to bridge the gap between digital assets and traditional banking, especially after years of tension following the collapse of crypto-friendly banks like Silvergate Capital and Signature Bank in 2023.
The Trump administration’s pro-crypto stance has catalyzed this shift.
President Trump’s pledge to make the U.S. a “Bitcoin superpower” and the White House’s encouragement of closer ties between crypto firms and banks have created a more favorable environment.
U.S. Federal Reserve Chair Jerome Powell recently endorsed establishing a legal framework for stablecoins, acknowledging their growing mainstream appeal after a “wave of failures and frauds” in the crypto space.
This regulatory clarity is a top priority for firms like Circle, which delayed its IPO in April 2025 amid market uncertainty but remains focused on compliance.
However, obtaining a bank charter is not without challenges.
Anchorage Digital, the only crypto firm currently holding a federal bank charter, has spent tens of millions to meet compliance requirements and faced scrutiny from regulators, including a 2022 consent order for deficiencies in anti-money-laundering measures.
Recent reports also indicate an investigation by the U.S. Department of Homeland Security’s El Dorado Task Force into Anchorage’s practices.
These hurdles underscore the trade-off for crypto firms: legitimacy comes with heavier regulatory burdens, including capital rules and audits.
The move toward bank charters also signals a broader shift in the financial landscape.
Traditional banks like U.S. Bancorp and Bank of America are re-entering the crypto space, with the latter considering its own stablecoin pending clearer regulations.
Global players like Deutsche Bank and Standard Chartered are eyeing U.S. crypto opportunities, reflecting the sector’s growing competitive frontier.