Forbes: Looser US regulations drive fintech banking, crypto firms accelerate to compete for banking licenses

ChainCatcher News reports that, according to Forbes, as the regulatory environment in the United States gradually relaxes, the fintech industry is accelerating its transition to “licensed banking.” Last year, the approval process for trust bank licenses significantly sped up, and the Office of the Comptroller of the Currency (OCC) has approved conditional applications for national trust bank licenses for five companies including Circle, Ripple, BitGo, Fidelity Digital Assets, and Paxos. It is understood that holding a banking license is also seen as an important means to hedge against capital market fluctuations.

Industry insiders believe that the era of fintech companies serving only as front-end channels for traditional banks is coming to an end. More and more digital finance and crypto institutions are beginning to seek banking licenses directly. By accepting deposits and connecting to the federal payment system, crypto companies can obtain more stable and lower-cost sources of funding.