Wall Street Banks Embrace Crypto Under Trump’s Pro-Crypto Policies

U.S. Banks Expand Crypto Services as Trump’s Policies Boost Wall Street’s Confidence

The U.S. crypto landscape is undergoing a seismic shift as President Donald Trump’s return fuels optimism among financial institutions. His pro-crypto stance and push for regulatory clarity are encouraging Wall Street giants to embrace digital asset services—a move that could reshape the traditional banking sector.

Wall Street Banks Enter the Crypto Market

In a recent report, crypto journalist Yueqi Yang highlighted a growing trend: large U.S. banks are actively exploring crypto services, particularly in the realm of custody solutions. Several major financial players are positioning themselves to capitalize on Trump’s regulatory changes, which could provide a clearer framework for institutional crypto adoption.

Citigroup Takes a Big Step into Crypto Custody

One of the most notable developments comes from Citigroup, a banking giant with $2.4 trillion in assets. According to The Information, Citigroup is considering launching crypto custody services, marking a major milestone in its digital asset expansion.

This decision follows the bank’s successful proof-of-concept project, where it issued and stored tokenized private equity funds on a blockchain network. The move signals Citigroup’s confidence in digital assets as a critical component of its future financial services.

Major Financial Institutions Strengthen Crypto Custody Services

Citigroup is not alone in this endeavor—other top-tier financial institutions are also diving deeper into the crypto space:

BNY Mellon is expanding its custody services beyond Bitcoin and Ethereum ETFs, strengthening its role as a key player in institutional crypto adoption.

Standard Chartered has launched a digital asset custody service in Dubai, catering to a growing market of crypto-focused investors.

HSBC is actively developing institutional-grade crypto custody solutions, positioning itself to serve high-net-worth and corporate clients.

Crédit Agricole and Banco Santander, two European banking giants, have secured crypto custody approval in France, highlighting global financial institutions’ increasing interest in regulated digital asset services.

Ethereum Named Wall Street’s Top Crypto Token Over XRP in 2025

State Street, which manages a staggering $44.3 trillion in assets, has partnered with Taurus to provide crypto custody and tokenization services for institutional investors.

This wave of adoption signals a paradigm shift in the financial industry, with traditional banks moving from crypto skepticism to active participation.

Regulatory Hurdles Remain for Some Banks

Despite growing enthusiasm, regulatory uncertainty remains a significant barrier for many banks looking to enter the crypto space.

According to The Information, Coinbase has been in discussions with banks to offer custody and trading services. However, several financial institutions are still awaiting approval from the Federal Reserve and the New York Department of Financial Services (NYDFS) before fully committing to crypto trading operations.

Fed Chair Powell Signals Support for Crypto Banking

Federal Reserve Chair Jerome Powell has acknowledged the increasing demand for crypto banking services. In a recent statement, Powell emphasized that U.S. banks with proper risk management measures should be allowed to serve crypto clients.

However, concerns over debanking—the practice of restricting crypto-related businesses from accessing financial services—remain a key issue. Powell has promised to collaborate with Congress to address this problem, aiming to establish a fair regulatory environment for both banks and crypto firms.

More Banks Eye Crypto Services Amid Market Growth

With regulatory clarity on the horizon, more financial institutions are exploring crypto services:

Morgan Stanley-backed E-Trade hinted at plans to introduce crypto trading and custody solutions as early as January 2024.
Goldman Sachs has indicated that it would consider launching digital asset operations, contingent on favorable regulations.

This growing momentum among legacy banks demonstrates that crypto adoption is no longer a niche movement—it is integrating into the core of global finance.

What’s Next for Crypto Adoption in Banking?

As President Trump pushes for clearer regulations, the U.S. banking sector’s attitude toward crypto is shifting. With major banks entering digital asset custody, expanding services, and awaiting regulatory green lights, the crypto industry is poised for a new era of institutional growth.

Key Takeaways:

Big Banks Are In: Citigroup, BNY Mellon, HSBC, and others are expanding into crypto custody.
Regulatory Challenges Remain: Many banks are waiting for Federal Reserve approval before offering trading services.
Fed Chair Powell is Open to Crypto: The Federal Reserve is signaling support for properly managed crypto banking operations.
Trump’s Policies Could Accelerate Adoption: A pro-crypto administration could provide the regulatory clarity banks need to fully embrace digital assets.