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Crypto Firms Race for U.S. Banking Footholds Amid Looser Rules
A New Chapter for Bitcoin: The Rise and Future of Layer 2 Ecosystems
In the cryptocurrency universe, Bitcoin remains the undisputed king, boasting a market capitalization exceeding $1.69 trillion—dwarfing all other blockchain projects. Yet, much of this capital lies dormant, trapped in wallets, serving little purpose beyond appreciation. It’s akin to owning a Ferrari that never leaves the garage, existing solely as a showpiece. Today, Bitcoin’s ecosystem is undergoing a profound transformation. The emergence of Layer 2 (L2) solutions is injecting new life into...
How WBTC and cbBTC Expand Bitcoin's Utility
Key Takeaways:Wrapped Bitcoin (e.g., WBTC and cbBTC) extends Bitcoin's utility beyond its native network, enhancing cross-chain accessibility and interoperability.Different wrapped Bitcoin variants employ distinct custody models and governance structures—ranging from fully centralized issuers (e.g., Coinbase’s cbBTC) to decentralized, smart contract-based systems (e.g., Threshold’s tBTC).WBTC has the largest supply (~129K BTC), but cbBTC is rapidly gaining share (~43K BTC on Base and Solana)....
Staking PRIME or Buying PROMPT? A Wayfinder Yield Maximization Study
Over the past year, I have consistently shared estimated yield data for earning PROMPT tokens by staking PRIME. These estimates have frequently been referenced by the community. Following real-world validation post-TGE (Token Generation Event), I am pleased to report that these estimates were highly accurate: The model’s estimated total PROMPT points = Number of PRIME locked × Duration × Multiplier. Stakers receive a proportional share of points based on their staking ratio. When comparing th...
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Support Emmase
Crypto Firms Race for U.S. Banking Footholds Amid Looser Rules
A New Chapter for Bitcoin: The Rise and Future of Layer 2 Ecosystems
In the cryptocurrency universe, Bitcoin remains the undisputed king, boasting a market capitalization exceeding $1.69 trillion—dwarfing all other blockchain projects. Yet, much of this capital lies dormant, trapped in wallets, serving little purpose beyond appreciation. It’s akin to owning a Ferrari that never leaves the garage, existing solely as a showpiece. Today, Bitcoin’s ecosystem is undergoing a profound transformation. The emergence of Layer 2 (L2) solutions is injecting new life into...
How WBTC and cbBTC Expand Bitcoin's Utility
Key Takeaways:Wrapped Bitcoin (e.g., WBTC and cbBTC) extends Bitcoin's utility beyond its native network, enhancing cross-chain accessibility and interoperability.Different wrapped Bitcoin variants employ distinct custody models and governance structures—ranging from fully centralized issuers (e.g., Coinbase’s cbBTC) to decentralized, smart contract-based systems (e.g., Threshold’s tBTC).WBTC has the largest supply (~129K BTC), but cbBTC is rapidly gaining share (~43K BTC on Base and Solana)....
Staking PRIME or Buying PROMPT? A Wayfinder Yield Maximization Study
Over the past year, I have consistently shared estimated yield data for earning PROMPT tokens by staking PRIME. These estimates have frequently been referenced by the community. Following real-world validation post-TGE (Token Generation Event), I am pleased to report that these estimates were highly accurate: The model’s estimated total PROMPT points = Number of PRIME locked × Duration × Multiplier. Stakers receive a proportional share of points based on their staking ratio. When comparing th...
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Digital Banks and Crypto Converge
The line between digital banking and cryptocurrency is blurring fast. Fintech groups are rushing to harness the explosive growth of crypto assets to win U.S. customers, and they’re doing it by barging straight into traditional finance.
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New York-Based Circle: A National Trust Charter Would Be “Pivotal”
Circle, headquartered in New York, says securing a national bank-trust charter from the Office of the Comptroller of the Currency (OCC) would mark “an important step” toward weaving digital assets into the wider financial system. At present, Anchorage Digital remains the only crypto-native company to hold such a federal charter.
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Ripple, Circle, BitGo, and Kraken File or Plan Banking Moves
Crypto-payments giant Ripple, stable-coin issuer Circle, and custody specialist BitGo have all submitted applications for national trust-bank charters—licenses that allow limited banking services without taking retail deposits. Exchange Kraken, meanwhile, expects to roll out debit and credit cards next month.
“It’s a natural convergence,” Kraken co-CEO Arjun Sethi told the Financial Times, adding that the cards should launch “around the end of this month.”
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From “We Don’t Need Banks” to “Please Regulate Us”
The scramble underscores how crypto companies now aspire far beyond trading tokens. Confidence has soared under President Donald Trump’s crypto-friendly White House, a sharp reversal from the perceived hostility of the Biden era.
“This is the exact opposite of the original crypto ethos—‘we don’t need banks, we don’t need laws, we’re above it all,’” notes Max Bonici, partner at law firm Davis Wright Tremaine. “Now the refrain is ‘please regulate us.’”
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What a National Trust Charter Actually Does
National trust banks can safeguard assets and process payments, but they cannot make loans or accept deposits directly. The charter also spares firms the patchwork of state-by-state licensing and smooths their on-ramps into the broader financial plumbing.
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Stablecoin Legislation Looms
Washington is actively debating a stable-coin bill that would tether dollar-pegged tokens even closer to the traditional system.
“It effectively opens the U.S. financial market to stable-coins,” says Adam Chernichaw, partner at Pillsbury.
The draft Genius Act would tighten oversight and require issuers to back tokens with U.S. Treasuries—permissioned only for regulated banks and certain OCC-licensed non-banks.
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Ripple Eyes a Fed Master Account
Ripple CEO Brad Garlinghouse revealed the company has also applied for a Federal Reserve master account, which would let it park stable-coin reserves directly at the central bank.
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Robinhood, Revolut, and Klarna Join the Banking Push
Retail brokerage Robinhood—whose crypto trading revenue surpassed 50 % of total revenue last year—plans to launch limited banking services this autumn.
“We should be able to satisfy all of your financial needs,” CEO Vlad Tenev told the FT. “No need to worry about taxes, estate planning, or moving money around.”
London-based neobank Revolut, likewise reliant on crypto trading for a sizable slice of income, still eyes a full U.S. bank license. Klarna CEO Sebastian Siemiatkowski intends to fold crypto products into the buy-now-pay-later platform.
---
Big Banks Plot Their Own Stablecoins
Even traditional giants like Bank of America are preparing to issue their own stablecoins once U.S. rules are finalized.
“This administration has signaled it will open the chartering process in ways previous administrations did not,” says David Portilla, partner in the financial-services group at Davis Polk.
---
Not Everyone Wants a Banking License
Yet not every crypto firm believes a federal charter is necessary. Kraken, already licensed in Wyoming, is rolling out a new consumer app without pursuing either a national trust charter or a master account.
“We don’t want to be the bank that gives you a mortgage,” Sethi explains. “We just want to partner with whoever provides the best service.”
Digital Banks and Crypto Converge
The line between digital banking and cryptocurrency is blurring fast. Fintech groups are rushing to harness the explosive growth of crypto assets to win U.S. customers, and they’re doing it by barging straight into traditional finance.
---
New York-Based Circle: A National Trust Charter Would Be “Pivotal”
Circle, headquartered in New York, says securing a national bank-trust charter from the Office of the Comptroller of the Currency (OCC) would mark “an important step” toward weaving digital assets into the wider financial system. At present, Anchorage Digital remains the only crypto-native company to hold such a federal charter.
---
Ripple, Circle, BitGo, and Kraken File or Plan Banking Moves
Crypto-payments giant Ripple, stable-coin issuer Circle, and custody specialist BitGo have all submitted applications for national trust-bank charters—licenses that allow limited banking services without taking retail deposits. Exchange Kraken, meanwhile, expects to roll out debit and credit cards next month.
“It’s a natural convergence,” Kraken co-CEO Arjun Sethi told the Financial Times, adding that the cards should launch “around the end of this month.”
---
From “We Don’t Need Banks” to “Please Regulate Us”
The scramble underscores how crypto companies now aspire far beyond trading tokens. Confidence has soared under President Donald Trump’s crypto-friendly White House, a sharp reversal from the perceived hostility of the Biden era.
“This is the exact opposite of the original crypto ethos—‘we don’t need banks, we don’t need laws, we’re above it all,’” notes Max Bonici, partner at law firm Davis Wright Tremaine. “Now the refrain is ‘please regulate us.’”
---
What a National Trust Charter Actually Does
National trust banks can safeguard assets and process payments, but they cannot make loans or accept deposits directly. The charter also spares firms the patchwork of state-by-state licensing and smooths their on-ramps into the broader financial plumbing.
---
Stablecoin Legislation Looms
Washington is actively debating a stable-coin bill that would tether dollar-pegged tokens even closer to the traditional system.
“It effectively opens the U.S. financial market to stable-coins,” says Adam Chernichaw, partner at Pillsbury.
The draft Genius Act would tighten oversight and require issuers to back tokens with U.S. Treasuries—permissioned only for regulated banks and certain OCC-licensed non-banks.
---
Ripple Eyes a Fed Master Account
Ripple CEO Brad Garlinghouse revealed the company has also applied for a Federal Reserve master account, which would let it park stable-coin reserves directly at the central bank.
---
Robinhood, Revolut, and Klarna Join the Banking Push
Retail brokerage Robinhood—whose crypto trading revenue surpassed 50 % of total revenue last year—plans to launch limited banking services this autumn.
“We should be able to satisfy all of your financial needs,” CEO Vlad Tenev told the FT. “No need to worry about taxes, estate planning, or moving money around.”
London-based neobank Revolut, likewise reliant on crypto trading for a sizable slice of income, still eyes a full U.S. bank license. Klarna CEO Sebastian Siemiatkowski intends to fold crypto products into the buy-now-pay-later platform.
---
Big Banks Plot Their Own Stablecoins
Even traditional giants like Bank of America are preparing to issue their own stablecoins once U.S. rules are finalized.
“This administration has signaled it will open the chartering process in ways previous administrations did not,” says David Portilla, partner in the financial-services group at Davis Polk.
---
Not Everyone Wants a Banking License
Yet not every crypto firm believes a federal charter is necessary. Kraken, already licensed in Wyoming, is rolling out a new consumer app without pursuing either a national trust charter or a master account.
“We don’t want to be the bank that gives you a mortgage,” Sethi explains. “We just want to partner with whoever provides the best service.”
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