Circle, BitGo to apply for bank charters; Coinbase, Paxos may follow suit: WSJ

Several crypto firms — including stablecoin issuer Circle and trust company BitGo — plan to apply for U.S. bank charters and licenses, according to a new report in The Wall Street Journal. Crypto exchange Coinbase and stablecoin issuer Paxos are also considering similar moves, the report said.

Some firms are seeking narrow licenses that would allow them to issue stablecoins, according to the report. Any firm that secures such a license would face stricter regulation and oversight.

"Perhaps the future is that crypto will fully recreate normal banking, including bank regulation," wrote Bloomberg Opinion columnist Matt Levine. 

The news comes as Circle is engaged in what has been described as a “territorial battle” over proposed stablecoin legislation in Congress, The Block previously reported. "Established banks, like Bank of America, are hoping to amend the current drafts of legislation in such a way that nonbanks are more heavily restricted from issuing stablecoins," a person familiar with the matter told The Block.

Crypto firms have long struggled to access traditional financial infrastructure. In March 2024, Custodia Bank was denied access to a Federal Reserve master account after years of efforts — a decision that barred the firm from gaining the closest level of access to the U.S. money supply available to financial institutions.