Digital Asset Firms and Fintechs Rush to Become Banks as Regulatory Walls Crumble

Digital Asset Firms and Fintechs Rush to Become Banks as Regulatory Walls Crumble

The definition of what constitutes a bank is undergoing its most dramatic transformation in decades, as a wave of cryptocurrency platforms, fintech companies, and traditional financial institutions race to secure federal banking charters—a shift that could fundamentally reshape how corporate treasury functions interact with the financial system.

In just the past several weeks, at least nine entities have either applied for or received approval to charter new banks, according to filings tracked by Fintech Business Weekly. The surge marks an inflection point in a regulatory environment that, until recently, kept digital asset firms and non-traditional players at arm's length from the core banking system.

The applicants span the full spectrum of finance. Morgan Stanley applied to form Morgan Stanley Digital Trust, a national trust bank focused on digital assets. Japanese investment bank Nomura followed with its own application for Laser Digital National Trust Bank. Stripe, which recently acquired stablecoin infrastructure company Bridge, received conditional approval to form Bridge National Trust Bank. Crypto exchange Crypto.com, through its parent Foris DAX, also secured conditional approval for a national trust bank.

Perhaps most eyebrow-raising: World Liberty Financial, the cryptocurrency venture associated with President Trump's family, has applied to form World Liberty Trust Company focused on digital assets.

The rush isn't limited to crypto. Payoneer, a global HR and payroll platform, applied to form PAYO Digital Bank, which explicitly includes developing and using stablecoins as part of its business model. Meanwhile, General Motors and Edward Jones both received approval for deposit insurance applications necessary for their Utah-chartered industrial loan banks—GM Financial Bank and Edward Jones Bank, respectively.

For CFOs, the implications are immediate. The companies they already work with for payments, treasury management, and employee compensation are becoming banks. The distinction between "fintech partner" and "banking relationship" is blurring at a pace that outstrips most risk management frameworks.

The concentration of applications around digital assets and stablecoins suggests the regulatory calculus has shifted. Where federal banking regulators once viewed cryptocurrency-focused charters with deep skepticism, the current environment appears more permissive. That creates both opportunity and complexity for corporate finance teams evaluating where to hold deposits, how to manage cross-border payments, and whether stablecoin rails offer genuine operational advantages.

The industrial loan bank approvals for GM and Edward Jones represent a different trend: large corporations with existing financial services arms formalizing those operations as regulated banks. This isn't new—corporations have used the Utah ILC charter for decades—but the timing alongside the crypto applications underscores how multiple forces are simultaneously redefining banking's boundaries.

What remains unclear is how quickly these newly chartered institutions will become operational, and whether the current regulatory posture will persist. Conditional approvals still require entities to meet capital, compliance, and operational requirements before opening for business. But the sheer volume of applications in such a compressed timeframe suggests the industry believes the window is open—and may not stay that way indefinitely.