While the crypto adoption is penetrating deep into Wall Street with mainstream adoption, the story of cryptocurrency has fundamentally changed. It is no longer just a topic for some individuals. Instead, it has become a major part of the world’s institutional financial system.
Major banks and financial institutions, which were once very doubtful about crypto adoption, are now actively exploring ways to integrate digital assets into their services and capitalize on them.
The reason behind this boom comes after an intense demand for their clients, along with the launch of mature tools like spot Bitcoin ETFs. Apart from this, these banks are also following the growing trend of converting real-world assets into digital tokens, known as tokenization.
In 2025 alone, institutional money flowing into crypto hit a record of nearly $130 billion. Experts project even larger figures for 2026 as traditional finance and blockchain technology continue to merge. Banks are no longer watching from a distance. They are now constructing the importance of crypto adoption by offering services from secure storage and trading to issuing stablecoins and tokenized funds.
Impressive Regulatory Development Encourages Banks In Crypto Adoption
For a long time, banks treated cryptocurrency with a very careful approach. They were worried about its price swings, unclear regulations, and the risk of breaking compliance rules.
The unfortunate collapse of many crypto-friendly banks in 2023, including Silvergate, Signature, and Silicon Valley Bank (SVB), also triggered this fear among the financial institutions. This led to a period where many banks pulled back entirely from the crypto sector.
However, the last year, 2025, became a turning point for the traditional financial world. Under U.S. President Donald Trump’s pro-crypto administration, many regulatory frameworks related to crypto came into the light. These clear regulations finally provided the guidelines that large institutions required.
In the United States, the popular GENIUS Act became law in July 2025 with the President’s approval. This act has created the first federal framework for companies that issue stablecoins. It allows for proper licensing and supervision, integrating these digital currencies into the banking system with safety. This policy reversed earlier restrictive actions from regulators, which gives banks the confidence to offer crypto services without as much fear of punishment.
Additional progress is being made with the CLARITY Act, which saw Senate discussions continue into January 2026. This act is expected to define clear roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). It also seeks to clarify rules for tokenized assets and support new market structures.
🚨NEW: Crypto Market Structure Markup Postponed by Senate Banking Committee
In an anticlimactic end to what was meant to be a pivotal week for crypto policy, @BankingGOP yanked a markup of its landmark crypto bill.
What happened and what’s next. ⬇️https://t.co/WT1nRL7Ns4
— Eleanor Terrett (@EleanorTerrett) January 15, 2026
However, the crypto market structure markup has been postponed by the Senate Banking Committee after Coinbase CEO Brian Armstrong withdrew their support.
These regulatory developments in the U.S. have boosted confidence in the financial world, with regulators softening their overall stance toward banks working with digital assets.
In Europe, the Markets in Crypto-Assets Regulation (MiCA) achieved full implementation by 2025-2026. MiCA provides uniform rules across the European Union for issuing, trading, and servicing crypto assets. Alongside it, the Digital Operational Resilience Act (DORA) has mandated strong cybersecurity and risk management for all licensed financial institutions.
These frameworks have encouraged banks to actively seek licenses. For example, Germany’s DZ Bank secured MiCA approval for its “meinKrypto” trading platform in early 2026. Together, these US and EU regulatory developments have boosted crypto adoption. They now increasingly view crypto as an important financial infrastructure.
How Major Banks are Embracing the Crypto Sector
In recent months, many financial institutions and banks have been integrating cryptocurrency.
JPMorgan Chase, the biggest bank in the world, has opened its doors to the crypto market. Its Onyx division and JPM Coin system, which expanded to public blockchains in late 2025, now facilitate large-scale institutional payments and settlement.
By December 2025, JPMorgan was exploring both spot and derivatives trading for its big clients. It also has plans to accept Bitcoin and Ether as collateral for loans, which is going to start with ETF shares and expand to actual spot holdings.
Citigroup, also known as Citi, has been building its infrastructure for years and is targeting 2026 to launch its own crypto custody services. The bank is exploring new digital payment systems, stablecoin capabilities, and partnerships. This includes one with the exchange Coinbase to handle tokenized assets and other institutional products.
JUST IN: 🇺🇸 Arizona’s Newrez to accept Bitcoin and crypto for mortgage qualifications
Borrowers can now qualify for a mortgage without liquidating their holdings
One of the first major lenders in the U.S. to integrate Bitcoin
HUGE 🔥 pic.twitter.com/hCOA57YewB
— Bitcoin Archive (@BitcoinArchive) January 15, 2026
Goldman Sachs restarted its dedicated crypto trading desk and now offers Bitcoin and Ether derivatives along with structured products. Bank of America now allows its financial advisors to recommend Bitcoin ETFs to clients as of January 2026. Morgan Stanley has filed paperwork for Bitcoin and Solana investment trusts and ETFs in early 2026.
PNC Bank has launched a spot Bitcoin trading service for its private wealth clients, using infrastructure from Coinbase.
At the global stage, banks like Barclays are also getting involved, for example, by participating in the Ubyx stablecoin settlement system.
Conclusion
Despite the global adoption of crypto, the memory of the 2023 banking collapses is still fresh and reminds other banks to take a careful approach. The failure of Silvergate, Signature, and SVB are reminders of the risk involved.
However, the good part is that major banks are applying these lessons. They are now taking very cautious steps as these banks are now focusing on regulated products like ETFs and approved stablecoins. Also, positive regulatory development helps the crypto to become an inevitable part of the modern economy.
Also Read: Trump-backed World Liberty Financial (WLFI) Seeks Banking License
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