Circle, BitGo, Coinbase and Paxos Planning To Apply for Banking Licenses or Similar Authorizations: Report

Four major crypto companies are seeking various banking licenses in a strategic effort to integrate digital assets with traditional financial systems, according to a new Wall Street Journal report.

According to the WSJ report, USDC-issuer Circle and BitGo are pursuing federal bank charters that would allow them to function as conventional lending institutions, offering deposit services and loans.

The report also says that Coinbase and Paxos are exploring “similar moves.”

Currently, Anchorage Digital stands as the only crypto-native company holding a federal bank charter, highlighting the substantial compliance hurdles facing digital asset firms.

Back in 2022, Anchorage was ordered by the Office of the Comptroller of the Currency (OCC) to improve its controls around client due diligence, monitoring suspicious customer activity and other anti-money-laundering measures.

Last week, according to a report from Barron’s, the U.S. Department of Homeland Security’s El Dorado Task Force, which combats money laundering and other financial crimes, contacted Anchorage Digital Bank employees to inquire about the company’s practices and policies.

The report cited anonymous sources “familiar with the inquiry.” The specific reason for the probe remains unclear.

Says Anchorage CEO Nathan McCauley of complying with federal regulations,

“It has not been easy… [the] whole gamut of regulatory and compliance obligations that banks have can be intertwined with the crypto industry.”

Follow us on X, Facebook and Telegram

Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Surf The Daily Hodl Mix

  Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney

The post Circle, BitGo, Coinbase and Paxos Planning To Apply for Banking Licenses or Similar Authorizations: Report appeared first on The Daily Hodl.