Crypto giant struts US bank licenses to strengthen their legitimacy

Some of the biggest names in the crypto industry are currently trying to secure a place in the US financial system.

According to reports from Wall Street Journal, companies such as Circle and Bitgo are preparing to apply for bank licenses or similar official permits in order to move closer to the center of traditional financial system.

This marks a remarkable change in strategy for the digital-asset industry, which operated on the edge of the regulated banking system for a long time. After the collapse of FTX at the end of 2022 and the closure of crypto -friendly banks such as Silvergate and Signature, however, the distance between cryptocurrencies and conventional financial services became a disadvantage. With only a few bank partners and increasing regulatory control, companies had difficulties to maintain their business in the United States smoothly.

Now actors such as Circle – known for its StableCoin USDC – and digital storage Bitgo want to change this situation. By obtaining federal licenses, they want to legitimize their business models, gain more trust in regulatory authorities and institutions and to regain access to the central financial infrastructure.

If you are successful, these licenses could enable crypto companies to connect directly to the Federal Reserve's payment systems, to offer regulated custody services and to integrate the operation of stable coins more into the Fiat banking system. They would also help you to better meet compliance standards such as money laundering control (AML) and Know-YOUR-CUSTOMER requirements (KYC).

This step reflects a general development in the industry because crypto companies begin to adapt more to traditional financial systems. Even if the official approval could be a lengthy process, these applications signal a new phase in which compliance is not regarded as a compromise, but as a long -term strategy for survival, growth and legitimacy.