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Crypto and Fintech Firms Seek National Bank Charters for Growth

Crypto

Business Honor
19 March, 2025

Cryptocurrency and fintech firms are pursuing national bank charters under Trump to boost growth and credibility.

Cryptocurrency and fintech businesses are increasingly approaching the Trump administration to get national bank charters, with an aim to build their businesses and gain credibility with clients. As the administration pushes more industry-supportive policies, these businesses hope to get banking licenses that were previously slow in being approved by regulators.

The rush is apparent, with companies pursuing several applications to become banks. Alexandra Steinberg Barrage, a Troutman Pepper Locke law firm partner, said she observed more applications, but companies remain optimistic cautiously while waiting for the appointments of new banking regulators. While the chartering process of a bank requires surmounting additional regulatory barriers, it holds significant benefits in terms of cheaper capital costs, increased business credibility, and better market prospects.

One of the best-known examples of this trend is the fintech company SmartBiz, which was approved by the Office of the Comptroller of the Currency (OCC) to buy Centrust Bank, a community bank based in Chicago. It was the first bank charter issued to a fintech firm since 2021, and it suggests that perhaps this will be a continuous trend.

Despite the rise in application, obtaining a bank charter is no piece of cake. The process typically requires significant capital expenditure—$20 million to $50 million—and compliance with anti-money laundering legislation. Further, industry professionals emphasize sustaining tight licensing procedures to support financial security, although they recognize that such processes could be streamlined to accommodate more applicants.

The shift towards bank charters is being considered a strategic move for fintech and crypto businesses, giving them access to cheaper borrowing rates and a competitive advantage in a crowded market. As the Trump administration has indicated backing for technology and innovation, crypto businesses are hoping that there will be more opportunities in the next few months.