tl;dr
Four major crypto companies—Circle, BitGo, Coinbase, and Paxos—are seeking banking licenses to integrate digital assets with traditional finance. Circle and BitGo aim for federal bank charters to offer deposit and loan services. Anchorage Digital is currently the only crypto-native firm with such a ...
Four major crypto companies—Circle, BitGo, Coinbase, and Paxos—are actively pursuing federal banking licenses to merge digital assets with traditional financial systems.
Circle and BitGo are aiming for federal bank charters that would enable them to offer deposit and loan services, transforming their operations closer to conventional banks.
Anchorage Digital currently stands as the only crypto-native firm holding a federal bank charter, yet it faces significant regulatory compliance challenges.
Back in 2022, Anchorage was mandated by the Office of the Comptroller of the Currency (OCC) to enhance its anti-money laundering (AML) controls, including client due diligence and monitoring suspicious activities.
Recently, Anchorage came under investigation by the U.S. Department of Homeland Security's El Dorado Task Force, which focuses on combating financial crimes, including money laundering. The task force questioned Anchorage employees about company practices, though specific details remain undisclosed.
Anchorage CEO Nathan McCauley acknowledges the complexity of navigating federal banking regulations within the crypto industry, highlighting the intertwined nature of traditional banking compliance and digital asset operations.
This strategic push by leading crypto firms to secure banking licenses signals a major effort to bridge the gap between digital currencies and conventional finance, although regulatory hurdles remain substantial.