Big names in the crypto world are making a move to become more like traditional banks. According to a recent report, Circle, BitGo, Coinbase, and Paxos are all looking to get banking licenses or similar authorizations.
Going for the Charter
Circle and BitGo are reportedly aiming for full federal bank charters. This would let them offer services like taking deposits and giving out loans, just like regular banks. Coinbase and Paxos are also exploring similar options, though the specifics aren’t yet clear.
A Tough Road
Getting a banking license isn’t easy. Anchorage Digital is currently the only crypto company with a federal bank charter, and even they’ve faced challenges. They’ve been asked by regulators to improve their anti-money laundering measures. Recently, they were even contacted by a government task force investigating financial crimes, although the reasons aren’t publicly known. Anchorage’s CEO has commented that meeting all the banking regulations while working in the crypto space is extremely difficult.
The Bottom Line
This push by major crypto firms shows a desire to better integrate digital assets with the traditional financial system. It will be interesting to see how these applications are received by regulators and what impact it has on the crypto industry.
