- Deutsche Bank and Standard Chartered are exploring expansion into the U.S. crypto market.
- Traditional banks return to crypto following FTX collapse and Trump’s crypto-friendly stance.
- Anchorage Digital faces scrutiny amid increased interest from banks and crypto firms.
Leading financial institutions, such as Deutsche Bank and Standard Chartered, are eyeing the possibility of venturing into the U.S crypto market. This comes at a time when these financial giants are seeking better ways to venture into this growing sector. According to the Wall Street Journal, these banks are going back to the drawing board on their crypto initiatives after steps of prudence. The renewed interest indicates that traditional finance is now beginning to change its attitude towards digital currencies.
The banks are reportedly planning for the expansion since the conventional financial institutions are now extending their influence to the crypto market. Their renewed interest follows a period of retreat after the FTX collapse and the shutdown of several traditional banks that once served the crypto industry. Those events triggered heightened volatility across the crypto market. However, the sector is receiving new momentum with Donald Trump’s plans to make the United States friendlier to cryptocurrencies.
Banks Exploring U.S. Crypto
The report failed to outline the extent of the plans by the banks. Still, the fact remains that they are probing the USA, making them more open to new financial technologies in general, including cryptocurrencies. Circle, Paxos, BitGo, Coinbase, and other crypto firms also showed their interest in getting bank charters or licenses. These firms are interested in occupying a larger portion of the regulatory space to improve their legitimacy in the financial chain.
However, Anchorage Digital, the only Bitcoin company in the United States to have a federal bank charter, continues to attract attention. The firm had used tens of millions in its quest to come to terms with the provisions of these regulations. However, it is under investigation by the U.S. Department of Homeland Security. According to various sources, the El Dorado Task Force, which specializes in money laundering and financial crimes, might be investigating Anchorage.
Related: Banking Giant StanChart Outlines XRP’s Path to $12.50
However, Anchorage Digital has vehemently refuted any wrongdoing in this regard. The firm has dismissed the report as not credible, citing that it was based on speculation. They also said that Barron’s failed to provide specific information about the probe as well as its extent.
Related: US Banks No Longer Need to Notify FDIC Before Crypto Activity: Rule Change
Despite the scrutiny, the increasing involvement of traditional banks in the U.S. crypto market points to a significant shift in the financial landscape. The application of the legislation and the attention of institutional investors thus pose new challenges to the sector’s changing market position. This raises the question that will determine the future of cryptocurrencies and their integration into the conventional financial sector.
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