The news: Stablecoin issuer Circle and crypto custodian BitGo are reportedly preparing to apply for US bank charters, per Cointelegraph.
How we got here: Crypto players’ are expanding into more traditional banking services as new and updated regulations shape a favorable environment. And depending on regulatory approval, crypto platforms could be allowed to act more like banks and accept deposits or issue loans.
But this would also bring them under the same regulatory umbrella as traditional financial institutions (FIs), which means their services can help them gain or lose consumer trust—a challenge they’ve already faced.