The trend: Gen Z’s recent banking and payments behavior shows they are integrating cryptocurrency into their normal banking habits.

• 12.7% use crypto to fund down payments when buying a home, according to Redfin.
• 75% are open to being paid in stablecoins instead of traditional currencies, per Onesafe.
• They’re four times more likely to own crypto than have a 401(k), per Money.
• Crypto’s their top investment choice, with 65% planning to invest in more crypto this year, per Equities.

Why this matters for banks: Gen Z's widespread adoption of cryptocurrency for everyday transactions and investment signals a critical challenge for traditional banks. Meanwhile, fintechs and other nontraditional platforms are actively targeting these younger customers with in-demand products.

Banks must embrace this shift by offering crypto-related products like custody or exchange services and integrating them seamlessly into core offerings. This strategic move is a matter of staying relevant and competitive. And it presents an opportunity for banks to innovate, build new revenue streams, and solidify their position as the central financial hub for the next generation of consumers.

To learn more about how banks can incorporate crypto into lending products, read our report “US Home Lending Trends 2025” next.