Ripple, Circle & Kraken Want to Become Banks: Here’s Why That’s a Huge Deal

Crypto firms have faced years of exclusion from traditional finance. However, Ripple, Circle, and Kraken have pushed their own boundaries and are leading the way. 

The fall of FTX in 2022 and the collapse of crypto-friendly banks like Silvergate, Signature, and Silicon Valley Bank pushed traditional institutions even further away from the sector, leaving a few options available. 

Kraken paved the way early by securing a Special Purpose Depository Institution (SPDI) charter in Wyoming back in 2020, setting a model for others to follow. Now, bigger names are entering the race for full national charters.

Circle, the issuer of stablecoin USDC, applied on June 30, 2025, to become a First National Digital Currency Bank, N.A., just weeks after its blockbuster initial public offering (IPO) pushed its valuation to nearly $18 billion. 

Ripple followed with its own application for a national bank charter on July 2, 2025. 

The once “unbanked” crypto startups are three giants that want to build inside the banking system on their own terms. This shift could reshape the entire industry, but it is a logical move.

This article explains why top crypto companies want to become regulated banks in 2025, how that shift affects stablecoins like USDC, and what it means for financial infrastructure, regulation, and global competition. It looks at real-world examples, legal risks, and the long-term impact on the future of digital finance.

Which Crypto Firms Want to Become Banks (As of July 2025)

Crypto companies are no longer waiting for traditional finance to catch up. Ripple, Circle, and Kraken aim to secure their position, access the financial system without intermediaries, and build regulated crypto infrastructure from within. But they are not the only ones.

Anchorage made history in 2021 by becoming the first federally chartered crypto bank through a conditional OCC trust charter. Operating as Anchorage Digital Bank, N.A., it faced regulatory pressure in 2022 over Bank Secrecy Act (BSA)/ anti-money laundering (AML) compliance and has worked to address those concerns. 

Since then, Anchorage has taken steps to improve its compliance controls and governance framework, maintaining its charter under continued regulatory oversight. Throughout this process, Anchorage has also emerged as a vocal advocate for regulatory clarity in digital asset banking. 

CEO Nathan McCauley testified before the U.S. Senate Banking Committee in late 2024, highlighting the systemic risks of de-banking crypto firms and emphasizing the importance of federally regulated entities like Anchorage in bridging the gap between traditional finance and digital assets. 

As of mid-2025, Anchorage remains a chartered and operational trust bank serving institutional clients, actively engaged in shaping U.S. crypto policy from within the regulatory framework.

The table below lists various crypto firms that want to become banks as of July 2025.

This section breaks down how each firm is moving toward a common goal.

Kraken: Setting the Precedent on Crypto-Native Banking

Kraken, a U.S.-based crypto exchange offering trading, custody, and banking services, operates under a (SPDI) license in Wyoming, giving it a head start in building a compliant crypto-native bank and setting a strong precedent.

Its entity, Kraken Financial, is regulated by the Wyoming Division of Banking and must hold 100% reserves for fiat deposits, offering more security than traditional fractional reserve banks. 

Kraken provides fiat accounts, digital asset custody, and now offers commission-free trading for U.S. stocks and Exchange Traded Funds (ETFs).

It has also rolled out crypto debit cards in the UK and Europe through partnerships, using its regulated foundation to expand across both crypto and traditional financial services.

Furthermore, Kraken has expanded its regulatory presence in Europe by securing an e-money license in the UK and a European Union’s Markets in Crypto-Assets (MiCA) license in Ireland. 

These approvals allow the exchange to offer regulated crypto services to millions of users across the European Union.

Ripple: From Payments Network To Full-Service Crypto Bank

Ripple, the blockchain-based payments company behind XRP, now expanding into tokenization, custody, and crypto banking, has broadened its mission from cross-border payments to becoming a full-service financial institution. 

It plans to integrate custody, lending, and tokenization under a regulated umbrella. The company is seeking a national trust bank charter from the Office of the Comptroller of the Currency (OCC) and aims to secure a Federal Reserve master account, allowing direct access to U.S. payment systems and regulatory oversight. 

Notably, Ripple launched its own dollar-pegged stablecoin, RLUSD, in late 2024. The token quickly reached a market value of nearly $500 million. By becoming a bank, Ripple can support RLUSD and expand its services under a stronger, regulated infrastructure.

The shift reflects Ripple’s strategy to build end-to-end crypto financial infrastructure within the traditional banking framework.

Circle: Building a Digital Dollar Bank With Direct Fed Access

The issuer of USDC stablecoin, focused on payments, compliance, and digital banking infrastructure, is applying for a bank charter with the (OCC) to establish ‘First National Digital Currency Bank, N.A.’ 

This move is crucial for Circle to secure customer reserves directly with the Federal Reserve, rather than relying on commercial bank partners like BNY Mellon and BlackRock. 

This formal application aims to reinforce transparency and trust in USDC by allowing Circle to directly oversee its reserves. 

It also positions Circle to align with emerging U.S. stablecoin regulations, such as the GENIUS Act (Which became law in July 2025), and enables them to offer digital asset custody services to institutional clients.

As crypto firms push deeper into regulated finance, several have turned to U.S. banking charters to strengthen compliance, streamline operations, and scale their stablecoin services. 

The section below outlines the current status of major players pursuing federal licenses, their stablecoin involvement, access to the Federal Reserve, and primary regions of expansion as of July 2025.

Beyond Kraken, Circle and Ripple

Beyond Ripple, Circle, and Kraken, several other crypto firms are moving toward bank-level regulation. While their strategies vary, the shared goal is clear: long-term integration with the financial system.

Paxos

Paxos, a NYDFS-licensed trust company, issues PayPal USD (PYUSD) and Pax Dollar (USDP). Its preliminary federal charter application expired, but the company has pivoted to focus on state-level licensing and global expansion. 

It launched Global Dollar (USDG) in Europe under MiCA and operates in Singapore under the Monetary Authority of Singapore (MAS)’s supervision. Paxos is now focused on tokenization and regulated stablecoins.

BitGo

BitGo offers institutional custody as a state-chartered trust company in South Dakota and New York, and regulatory approval within the MiCA framework, giving it a regulatory framework similar to a bank. It has explored federal options but continues to scale using existing trust licenses.

Coinbase

Coinbase has expressed public interest in licensing and deep regulatory engagement. Its growing service suite, including custody, payments, and compliance, aligns with the responsibilities of a licensed institution.

Fidelity Digital Assets

Fidelity’s crypto arm provides custody and trading for institutional clients. It operates as a New York–chartered trust company, and in July 2025, Fidelity Digital Assets, NA submitted an application for a national trust bank charter to the OCC. This move places it alongside Circle and Ripple in the effort to create federally regulated crypto banks.

Custodia Bank

Founded by Caitlin Long, Custodia holds a Wyoming SPDI charter but had its Federal Reserve membership application denied in 2023. The Fed cited safety and soundness concerns tied to Custodia’s model. The company has been in litigation over master account access since then, with the case still active in mid-2025.

The Broader Picture

Not all efforts succeed, but the direction is clear. For many firms, operating under a bank charter or something close to it, is the long-term path to scale, build trust, and offer stablecoin, custody, and payment services at institutional levels. 

Ripple, Circle, and Kraken remain at the forefront, but they are part of a larger shift toward full regulatory integration across the crypto sector.

What Is the OCC and Why It Matters for Crypto Firms

The Office of the Comptroller of the Currency (OCC) is a U.S. federal agency under the Department of the Treasury that charters, regulates, and supervises national banks and federal savings associations. It ensures these institutions operate safely, follow banking laws, and maintain consumer trust. 

For crypto firms like Ripple, Circle, and Fidelity Digital Assets, obtaining a national trust bank charter from the OCC is a critical step toward integrating with the traditional financial system. 

An OCC charter provides regulatory credibility, potential access to the Federal Reserve, and the ability to offer services like custody and stablecoin issuance at a national scale.

Why Becoming a Bank Could Be a Game-Changer for Crypto Companies

Banking has the potential to provide crypto firms with tools that go far beyond licenses.

• Direct access to financial infrastructure: A bank charter gives access to Federal Reserve payment rails, enabling faster, more secure settlements without third-party banks.
• Stronger stablecoins: Real-time settlement and reserve oversight improve stability, reduce risk, and offer a better user experience for assets like USDC and RLUSD.
• Custody and settlement under one roof: Regulated status allows firms to offer full custody, lending, and compliance services in-house, cutting costs and complexity.
• Regulatory credibility: A federal charter strengthens compliance and trust with regulators and institutions, which is key as laws like the GENIUS Act reshape the landscape.
• Institutional onboarding: With a bank license, crypto firms can offer services that meet the standards of traditional finance, helping bridge the gap.

From MiCA to FedNow: How Banking Licenses Unlock Global Markets for Crypto Firms

For Ripple, Circle, and Kraken, becoming a bank is a strategic move to stay compliant, scale faster, and operate globally.

MiCA in Europe

• The MiCA law enforces strict rules for stablecoins.
• Issuers must meet capital, reserve, and transparency standards.
• A U.S. bank charter paired with a European EMI license helps satisfy most MiCA requirements.
• This setup allows Circle to move USDC across countries like France, Germany, and Spain without repeated national approvals.
• Without bank-level compliance, stablecoins risk usage limits or exclusion from the eurozone system.

FedNow in the US

• FedNow, launched by the Federal Reserve in 2023, enables real-time USD payments 24/7.
• Access is limited to regulated financial institutions.
• With a bank license, Ripple or Circle can connect directly to FedNow.
• This would allow fast, reliable redemption of USDC or RLUSD, even on weekends.
• As FedNow adoption grows among U.S. payment providers, unlicensed crypto firms may be left out.

The Global Playbook

• In regions like Asia, Latin America, and the Middle East, regulatory pressure is rising.
• Singapore favors licensed crypto firms with strong internal controls and audit systems.
• Brazil now requires platforms to safeguard customer funds in approved institutions.
• Dubai and Abu Dhabi demand proof of solvency and robust compliance to maintain licenses.
• Holding a U.S. bank license improves credibility in these markets.
• For firms like Kraken and Circle, it opens doors to offer stablecoin services, custody, and cross-border payments under trusted oversight.

The global market is divided between firms that meet regulatory standards and those that fall behind. Becoming a bank gives crypto companies a clear path to stay on the right side of that divide.

Risks of Crypto Companies Operating as Banks

Becoming a bank comes with challenges. For crypto firms, the shift means more oversight, higher costs, and strong pushback from both regulators and traditional banks.

• Regulatory resistance: Agencies and policymakers have raised concerns about granting direct Federal Reserve access to crypto-native firms.
• Traditional bank pushback: Big banks see new entrants like Ripple and Circle as competition and oppose giving them access to core payment systems.
• Strict compliance standards: Bank licenses come with tough exams, capital requirements, and internal controls.
• High infrastructure costs: Meeting standards for cybersecurity, anti-money laundering, and real-time audits requires major upgrades.
• Market risk exposure: Crypto’s volatility could introduce financial instability if not tightly managed under banking frameworks.

The Future: Crypto Banks or Banked Crypto?

Crypto companies are applying for bank licenses to operate as regulated financial institutions with broader capabilities.

Global Positioning

A U.S. charter, paired with European and regional licenses, strengthens their case in emerging markets. Countries with strict frameworks such as Singapore, Brazil, and the United Arab Emirates require strong governance, real-time auditing, and licensed custody. Firms that meet these expectations are more likely to gain approval for local operations and stablecoin use.

Infrastructure Shift

With banking licenses, crypto firms can manage compliance, settlement, and custody directly. This removes their reliance on third-party service providers and gives them full control over risk, security, and transaction speed.

Institutional Onboarding

Banks are held to higher standards. Once crypto firms meet those standards, they are better positioned to serve asset managers, fintech platforms, and payment processors that require licensed partners.

Market Impact

This model could change how financial services are built and delivered. Instead of competing with traditional banks from the outside, licensed crypto firms are becoming part of the infrastructure that powers payments, lending, and asset custody worldwide.

However, in July 2025, the American Bankers Association (ABA) urged the OCC to pause charter approvals for crypto firms like Ripple, Circle, BitGo, and Fidelity due to concerns over transparency and regulatory standards. 

Conclusion

Crypto firms like Ripple, Circle, and Kraken are taking bold steps toward full banking integration. By seeking U.S. charters and direct Fed access, they aim to strengthen their stablecoin offerings, comply with evolving laws, and reduce dependence on third-party providers. 

These moves are not about abandoning crypto’s roots but about reshaping finance from within.

While this shift brings major advantages, like faster settlements, institutional trust, and global reach, it also introduces new risks. Regulatory pushback, compliance costs, and market volatility could test the model. 

Still, by mid-2025, the trend is clear: crypto firms are not waiting for permission. 

They’re building regulated infrastructure to compete on the same level as traditional banks, with Ripple, Circle, and Kraken leading the way.

FAQs

About the Author

Dr. Lorena Nessi

Dr. Lorena Nessi is an award-winning journalist and media technology expert with 15 years of experience in digital culture and communication. Based in Oxfordshire, UK, she combines academic insight with hands-on media practice.

She holds a PhD in Communication, Sociology, and Digital Cultures, and an MA in Globalization, Identity, and Technology.

Lorena has taught at Fairleigh Dickinson University, Nottingham Trent University, and the University of Oxford. She is a former producer for the BBC in London, with additional experience creating television content in Mexico and Japan.

Her research focuses on digital cultures, social media, technology, capitalism, and the societal impact of blockchain innovation.

She has written extensively on digital media and emerging technologies, with her work featured in both academic and media platforms. Her Web3 expertise explores how blockchain technologies shape culture, economics, and decentralized systems.

Outside of work, Lorena enjoys reading science fiction, playing strategic board games, traveling, and chasing adventures that get her heart racing. A perfect day ends with a relaxing spa and a good family meal.

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