The trend: Traditional and decentralized finance are quickly merging as banks and other financial institutions adopt cryptocurrency services with intention and crypto companies enter the banking industry as licensed institutions.
In EMARKETER’s banking coverage this year, four themes emerged at the intersection of crypto and banking:
- Stablecoins: Especially after the GENIUS Act passed this summer, stablecoins are drawing banking and crypto closer. Megabanks like JPMorgan Chase and Citi are testing institutional blockchain services, while SoFi’s launch of SoFiUSD and crypto infrastructure may lead community banks to embrace stablecoins. Read a story.
- Institutional crypto infrastructure: Major financial firms are expanding their crypto infrastructure beyond payments to custody and trading, particularly for institutional investors. Citi has begun commercializing its Citi Token Services platform, using tokenized deposits to improve liquidity and cross-border payments. JPMorgan completed tests with its proprietary deposit token. And Fidelity just added Solana to its digital assets platform for all investors. Read a story.
- Bank charters and the crypto industry: Crypto firms seeking bank charters are prompting pushback from the banking industry. Coinbase and its peers have applied for trust charters, meaning they can blend custody of traditional deposits with crypto services. State licenses, like Wyoming’s Special Purpose Depository Institution charter, enable state-level regulation of crypto-friendly banks. Meanwhile, new banks like Erebor blend traditional banking and crypto-native services. Read a story.
- Gen Z and crypto: Gen Z is increasingly weaving cryptocurrency into routine financial activities—from funding home down payments to expressing openness to being paid in stablecoins. They are four times more likely to own crypto than a 401(k), and 65% plan to increase their crypto investments this year. Fintechs are already targeting these consumers with crypto-native tools, and traditional institutions risk losing relevance if they don’t respond. Read a story.