• Deutsche Bank and Standard Chartered are exploring expansion into the U.S. crypto market.
• Traditional banks return to crypto following FTX collapse and Trump’s crypto-friendly stance.
• Anchorage Digital faces scrutiny amid increased interest from banks and crypto firms.

Leading financial institutions, like Deutsche Bank and Standard Chartered, are considering stepping into the U.S. crypto market. This interest comes as these major financial players explore better strategies to engage with this rapidly growing sector. According to the Wall Street Journal, these banks are revisiting their crypto initiatives, re-evaluating their approaches after a period of caution. This renewed interest suggests a shift in traditional finance’s perspective on digital currencies.

These expansion plans reportedly stem from traditional financial institutions increasingly influencing the crypto market. This renewed interest follows a period of retreat after the FTX collapse and the closure of several traditional banks previously serving the crypto industry. Those events led to heightened volatility across the crypto market. However, the sector is now gaining new momentum, particularly with Donald Trump’s plans to make the United States more welcoming to cryptocurrencies.

Banks Exploring U.S. Crypto

The report didn’t specify the full extent of the banks’ plans, but it’s clear they are exploring opportunities in the U.S., signaling a broader openness to new financial technologies, including cryptocurrencies. Circle, Paxos, BitGo, Coinbase, and other crypto firms have also shown interest in obtaining bank charters or licenses. These firms aim to secure a larger piece of the regulatory pie to enhance their legitimacy within the financial system.

However, Anchorage Digital, the only Bitcoin company in the United States with a federal bank charter, is still drawing attention. The firm reportedly invested tens of millions in its efforts to comply with these regulations. However, it is now under investigation by the U.S. Department of Homeland Security. According to reports, the El Dorado Task Force, specializing in money laundering and financial crimes, might be investigating Anchorage.

Related: Banking Giant StanChart Outlines XRP’s Path to $12.50

However, Anchorage Digital has strongly refuted any suggestion of wrongdoing. The firm dismissed the report as lacking credibility, arguing it was based on pure speculation. They also pointed out that Barron’s did not provide any specific details about the probe or its scope, suggesting the report was unfounded.

Related: US Banks No Longer Need to Notify FDIC Before Crypto Activity: Rule Change

Despite this scrutiny, the increasing involvement of traditional banks in the U.S. crypto market signals a significant shift in the financial landscape. The application of regulations, alongside the increased attention from institutional investors, presents new challenges to the sector’s evolving market position. This raises crucial questions about the future of cryptocurrencies and their integration into the traditional financial system.