Author: Stephanie Bedard-Chateauneuf

Financial technology (fintech) firms and crypto companies are increasingly applying for bank charters to expand operations and reduce borrowing costs. A bank charter provides these firms with legitimacy in the eyes of customers and regulators, while lowering the cost of doing business by allowing them to tap into deposits.

With the Trump administration signaling a more business-friendly approach, fintech firms are cautiously optimistic about obtaining bank charters. Industry experts predict that a deregulatory regime will encourage competition and open up opportunities for more fintechs to gain bank status.

Why Are Fintechs Seeking Bank Charters?

A bank charter provides several advantages to fintech companies, including:

Lower Cost of Capital: A charter enables fintech firms to access deposits, reducing their reliance on costly venture capital or high-interest borrowing.

Increased Legitimacy: Becoming a licensed bank boosts consumer trust and regulatory credibility, attracting more customers and investors.

Expanded Market Reach: Bank charters allow fintechs to offer a broader range of financial services, enhancing their competitive position.

According to Carleton Goss, a partner at Hunton Andrews Kurth, fintech companies applying for charters can significantly lower their borrowing costs, making it easier to grow and scale their businesses.

Trump Administration’s Pro-Growth Stance

The recent surge in charter applications follows signals from the Trump administration indicating a willingness to ease regulations and support innovation in financial services.

Nathan Stovall, director of financial institutions research at S&P Global Market Intelligence, noted that during Trump’s first term, there was an increase in charter applications. Industry experts expect a similar wave of applications under Trump’s current administration.

Federal Reserve Governor Michelle Bowman, nominated by Trump as vice chair for supervision, has advocated for faster approvals of bank charters to encourage competition and innovation.

Additionally, Travis Hill, acting chair of the Federal Deposit Insurance Corporation (FDIC), has publicly stated that the agency would promote charter applications to ensure a healthy pipeline of new entrants into the banking sector.

Regulatory Challenges Facing Fintech Charters

Despite the potential benefits, fintech companies face several challenges in obtaining bank charters.

High Costs and Compliance Requirements

Setting up a bank typically requires between $20 million and $50 million in initial capital, according to legal experts. Additionally, compliance with anti-money laundering (AML) laws and the Bank Secrecy Act poses significant hurdles for aspiring fintech banks.

Slow Approval Process

Historically, bank charter approvals have been slow, with applications sometimes taking years to process. Between 2010 and 2023, only an average of five bank charter applications were approved annually, compared to 144 per year between 2000 and 2007.

As fintech companies apply for charters, regulators remain cautious, emphasizing the need for thorough scrutiny to maintain financial stability. Nigel Moden, global banking and capital markets leader at EY, pointed out that while regulatory processes remain rigorous, there are hopes that the turnaround time for applications will improve under the current administration.

Recent Charter Approvals Signal Growing Momentum

A notable sign of momentum came when SmartBiz, a fintech firm, received approval to acquire Centrust Bank, a Chicago-based community bank. This acquisition granted SmartBiz a national bank charter, marking the first approval of its kind since 2021.

Industry insiders view this approval as a positive sign that more fintechs could follow suit, paving the way for greater competition and innovation in the banking sector.

Fintechs and Crypto Firms Eyeing Bank Status

Several fintech and crypto companies have shown interest in obtaining bank charters to diversify their offerings and gain regulatory credibility. Industry experts highlight that these companies want to “get ahead of the curve” by securing licenses that could reduce operational costs and provide a competitive advantage.

Alexandra Steinberg Barrage, a partner at Troutman Pepper Locke, noted that many fintech clients are “cautiously optimistic” about the prospects of securing bank charters in the current regulatory environment.

Impact on Banking Industry Competition

If more fintechs successfully obtain bank charters, it could reshape the financial services landscape by introducing specialized banks that cater to specific customer segments and regions. This increased competition could benefit consumers by driving down costs and fostering innovation.

However, experts caution that while fintechs may inject competition into the banking sector, the number of U.S. banks is still expected to decline due to an anticipated rebound in mergers and acquisitions among regional lenders.

Outlook for Fintech Bank Charters in 2025

As fintech and crypto companies navigate the charter application process, industry observers remain optimistic about the future. With the Trump administration’s pro-business stance and regulators signaling a willingness to facilitate innovation, fintech firms have a unique opportunity to expand their influence in the financial services sector.

While challenges remain, including high capital requirements and stringent regulatory scrutiny, the potential benefits of a bank charter—lower capital costs, increased legitimacy, and broader market reach—make it an attractive option for fintechs looking to secure a stronger foothold in the industry.

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U.S. President Donald Trump has made it clear that he intends to position the United States as the “crypto capital of the planet.” His administration has already taken significant steps to promote digital assets, including appointing a cryptocurrency czar and issuing executive orders to enhance the country’s leadership in financial technology. One of the most striking moves is the creation of a strategic Bitcoin (CRYPTO:BTC) reserve, signaling a shift toward legitimizing digital assets as mainstream financial instruments.

For investors, this policy shift raises several questions: Will regulatory clarity boost crypto adoption? How will this impact digital asset prices? And most importantly, is cryptocurrency a safer investment under Trump’s leadership?

Young Investors Are Betting on Crypto

Trump’s crypto-friendly stance has encouraged a new wave of investor enthusiasm, particularly among younger generations. A 2024 survey by market research firm YouGov Dot Com Ltd. revealed that 42% of Gen Z investors in the U.S. own cryptocurrency, compared to 36% of millennials, 24% of Gen X, and only 8% of baby boomers.

For many young investors, Trump’s endorsement of digital assets reinforces their belief in crypto’s long-term viability. With the president advocating for clearer regulations and potential government-backed reserves, some see this as a green light to increase their holdings. Even in Canada, where regulations differ, Trump’s influence is sparking increased interest in the sector.

Bitcoin’s Rollercoaster Ride Under Trump

Despite Trump’s backing, Bitcoin has had a volatile year. After initially soaring past US$100,000 following his election victory, it has since faced sharp fluctuations, dipping below US$80,000 before rebounding. The unpredictability of Bitcoin underscores the speculative nature of cryptocurrency, which remains highly sensitive to macroeconomic factors and regulatory changes.

Beyond Bitcoin, investors are also exploring alternative digital assets, including Ethereum (CRYPTO:ETH) and meme coins tied to Trump’s persona. While these assets may offer short-term gains, they also come with heightened risks, as their value can be driven more by social sentiment than fundamental utility.

Regulatory Uncertainty: A Double-Edged Sword

One of the biggest unknowns surrounding Trump’s crypto policy is how regulation will evolve. While his administration appears to favor innovation, the regulatory landscape remains fluid. The U.S. Securities and Exchange Commission (SEC) has softened its stance on certain crypto assets but continues to crack down on unregistered securities and fraudulent projects.

Trump’s plan to establish a strategic Bitcoin reserve may also impact market dynamics. If the U.S. government becomes a significant Bitcoin holder, it could add a layer of stability to the asset. However, it may also increase government control over digital currencies, potentially limiting some of the decentralization benefits that attract investors to crypto in the first place.

Risks and Opportunities for Crypto Investors

For those considering investing in cryptocurrency under Trump’s leadership, there are both opportunities and risks:

Potential for Regulatory Clarity: If Trump follows through on his commitment to pro-crypto policies, clearer regulations could attract institutional investors, driving market growth.

Government Involvement: The U.S. Bitcoin reserve could add legitimacy to digital assets, but it also raises concerns about government influence over the market.

Market Volatility: Despite growing adoption, cryptocurrency remains a high-risk asset. Investors should be prepared for price swings.

Security and Fraud Risks: While crypto offers opportunities, it is still vulnerable to hacks, scams, and unregulated markets.

Final Thoughts

Trump’s crypto policy is making waves in the digital asset space, but investors should tread carefully. While his administration’s support may boost confidence in the market, cryptocurrency remains speculative and highly volatile. Those interested in investing should conduct thorough research, consider their risk tolerance, and stay informed on regulatory developments.

For now, one thing is clear—Trump’s influence on crypto is reshaping the landscape, and investors will need to navigate both the opportunities and challenges that come with it.

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If you’ve been considering a crypto investment but haven’t taken the leap, now might be the perfect time. The U.S. government’s recent decision to establish a Crypto Strategic Reserve marks a significant step toward mainstream acceptance of Bitcoin (BTC-USD) and other digital assets.

This move comes as Bitcoin experienced a price dip from $88,000 to around $77,000 before rebounding to approximately $80,000. While some investors see volatility as a risk, seasoned traders recognize downturns as buying opportunities. With clearer regulations, increased institutional adoption, and the continued evolution of blockchain technology, this crypto investment opportunity may be too good to ignore.

Institutional Investors Are Betting on Crypto

One of the most compelling reasons to consider cryptocurrency right now is the growing institutional interest in digital assets. Chris Sullivan, co-founder of Hyperion Decimus, a crypto hedge fund, highlights how sovereign wealth funds and major financial institutions are increasingly embracing Bitcoin.

“The approval of the BTC strategic reserve at both the federal and state levels, along with Bahrain’s sovereign wealth fund investing in Bitcoin, shows institutional adoption is happening in real-time,” Sullivan said.

Additionally, U.S. banks have now been cleared to hold Bitcoin for customers, making it easier for everyday investors to gain exposure to crypto.

Regulatory Clarity Reduces Investment Uncertainty

For years, the lack of clear regulations surrounding cryptocurrency made many investors hesitant. However, this uncertainty is now fading as governments establish clearer policies.

Many states are proposing Bitcoin reserves, and the Securities and Exchange Commission (SEC) has recently dropped lawsuits against major crypto firms, signaling a more favorable regulatory environment. According to Sullivan, “The clearer the regulation, the more predictable the market becomes, minimizing risk for investors.”

With regulatory uncertainty easing, this crypto investment opportunity appears more stable than ever.

Crypto as a Hedge Against Inflation

Bitcoin has long been compared to gold as a hedge against inflation and economic instability. With global inflation concerns and ongoing monetary policy shifts, investors are increasingly turning to Bitcoin to protect their wealth.

“With continuing concerns over inflation, monetary policy divergence, and global economic instability, crypto continues to offer a hedge against fiat devaluation,” Sullivan noted.

Bitcoin’s Recent Price Dip: A Buying Opportunity?

Bitcoin’s recent pullback worried some investors, but crypto experts view these dips as ideal entry points. Jag Sidhu, core developer at Syscoin, emphasizes that institutional investors often capitalize on these price movements.

“Institutional investors and market whales frequently see such dips as perfect buying opportunities,” Sidhu explained. “They continue accumulating Bitcoin, confident in its long-term potential.”

For long-term investors, the current crypto investment opportunity could be a chance to buy at a discount before the next price surge.

Tokenization Is Reshaping Finance

Beyond Bitcoin, blockchain technology is driving innovation in traditional finance. The tokenization of assets—stocks, real estate, and commodities—is gaining traction, creating new ways to invest.

Davis Richardson, managing partner at R3 Consulting, points to Coinbase (NASDAQ:COIN) and Nasdaq (NASDAQ:NDAQ) as examples of firms exploring tokenization.

“Coinbase is revisiting plans to tokenize its stock, and Nasdaq is considering launching 24-hour trading, mirroring crypto markets,” Richardson said. “The writing’s on the wall—crypto is reshaping finance.”

Crypto Payments Are Becoming Mainstream

The adoption of cryptocurrency for everyday transactions is increasing, further solidifying its place in the financial system. Bitcoin’s Lightning Network now processes over 1 million transactions per second, surpassing traditional payment networks like SWIFT and major credit card providers.

As more businesses accept crypto, its utility as a real-world payment method strengthens, making it a more viable long-term investment.

Conclusion: Is Now the Right Time to Invest?

With the U.S. officially holding Bitcoin in reserves, institutional adoption increasing, and regulations becoming clearer, crypto is more stable and legitimate than ever. While risks remain, experts suggest that now may be the best crypto investment opportunity in years.

Max Kalmykov, CEO of Bitsgap, sums it up: “While others are scared or doubtful, this becomes the best time to start picking up these dips and buying crypto for the long term.”

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Trump-backed World Liberty Financial (WLFI) has just made waves in the cryptocurrency world, raising a staggering $590 million in its latest token sale. Originally set to raise $300 million, the overwhelming demand following Donald Trump’s election victory led to an expansion of its token supply, nearly doubling its fundraising goal.

With one of the largest capital raises in decentralized finance (DeFi) history, WLFI is now emerging as a major player in the space. But beyond the massive cash influx, the company has also made aggressive moves in the crypto market, investing heavily in major digital assets.

WLFI’s Bold Crypto Moves

This isn’t just a successful token sale—it’s a major bet on the future of cryptocurrency. WLFI has already deployed $21.6 million into Ethereum (ETH-USD), Wrapped Bitcoin (BTC-USD), Movement, and SEI.

According to Arkham Intelligence, the firm’s total portfolio now stands at nearly $78 million, including:

7,900 ETH (ETH-USD): Valued at approximately $15 million

162 WBTC: Worth $13.44 million

Additional holdings: Investments in lesser-known tokens, positioning itself for potential high-reward opportunities

By aggressively stacking crypto, WLFI is signaling confidence in digital assets despite the ongoing market turbulence. This move also aligns with Trump’s increasing support for blockchain technology, further cementing WLFI’s role in the DeFi space.

Can WLFI Sustain Its Momentum?

While the successful fundraising and crypto accumulation are impressive, WLFI now faces the real challenge—execution. The company has positioned itself as a key player in DeFi, granting token holders governance rights on its upcoming decentralized trading platform.

However, WLFI must navigate several risks, including:

Regulatory Scrutiny: With increasing government oversight on crypto, compliance will be crucial.

Market Volatility: Crypto prices can swing drastically, impacting WLFI’s investment value.

Platform Development: Delivering a competitive decentralized exchange is essential to justify investor confidence.

The next few months will be crucial in determining whether WLFI can transition from a successful capital raise to a sustainable crypto powerhouse.

The Future of Trump’s Crypto Investment

Trump’s growing influence in the crypto space is undeniable. His association with WLFI has not only fueled investor enthusiasm but also strengthened the case for greater crypto adoption under his administration.

WLFI’s success so far is promising, but the real test lies ahead. Will it continue its growth trajectory, or will regulatory and market challenges slow it down? For now, WLFI remains a high-stakes bet in the ever-evolving world of crypto.

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Bitcoin (BTC) has entered another bear market, leaving many new investors reeling from sudden losses. After hitting an all-time high of $109,071 in January 2025, Bitcoin has since tumbled to around $80,000, a decline of nearly 25%. For many newcomers, this Bitcoin bear market has been their first real test in crypto investing, and those who entered at the peak are now facing heavy losses.

Bitcoin’s Price Plunge and Market Sentiment

The Bitcoin bear market was triggered by a combination of global market uncertainty, tech stock declines, and concerns over U.S. economic policies. Despite optimism earlier in the year, Bitcoin’s rapid drop has spooked investors, leading to widespread sell-offs.

According to crypto data firm Glassnode, over 20 million new Bitcoin addresses were created in the past three months, highlighting the influx of new investors during the bull run. However, many of these traders are now facing significant losses, as the spent output profit ratio (SOPR)—which measures whether Bitcoin holders are selling at a profit or loss—has dropped below 1 for the first time since October 2024.

Leverage and Liquidations: Traders Face the Pain

One of the biggest reasons why the Bitcoin bear market is hitting new investors hard is leverage. Many traders used borrowed money to buy BTC at record highs, only to see their positions liquidated as prices fell. Analysts at Bitfinex reported that realized losses from leveraged traders have surpassed $800 million per day, with February 28 and March 4 marking some of the worst single-day losses.

Investment products tracking cryptocurrencies have also suffered. CoinShares reported that crypto investment funds have seen four consecutive weeks of outflows, with total assets under management dropping by $4.75 billion to $142 billion.

Even Bitcoin exchange-traded funds (ETFs) in the U.S. have struggled. On February 25, U.S. spot Bitcoin ETFs recorded $1.1 billion in daily outflows—the largest since their launch in January 2024, according to JPMorgan (NYSE:JPM). This suggests that institutional investors are also feeling the pressure of the current downturn.

Bitcoin Volatility Surges as Uncertainty Grows

The Bitcoin bear market has also led to a sharp increase in volatility. Amberdata reports that Bitcoin’s implied volatility, which reflects expected future price swings, has spiked to 69% in the past 24 hours. Ethereum (ETH), the second-largest cryptocurrency, has seen even greater volatility, rising from 65% to 90%.

“The last two weeks have been entirely driven by the equity market downturn,” said Jeff Dorman, chief investment officer at asset manager Arca. “This is similar to what we saw in late 2018—a short-term hiccup before new highs.”

While some analysts remain optimistic about Bitcoin’s long-term prospects, the current volatility suggests that the crypto market remains highly sensitive to external factors, including stock market fluctuations and regulatory developments.

Regulatory and Economic Factors Weigh on Bitcoin

Another reason for the Bitcoin bear market is the uncertain regulatory environment. While U.S. President Donald Trump’s executive order to create a strategic Bitcoin reserve initially boosted sentiment, it was not enough to sustain the rally. Concerns about potential new regulations, particularly around taxation and stablecoin oversight, continue to create uncertainty for investors.

At the same time, global macroeconomic concerns—including inflation worries, rising interest rates, and geopolitical tensions—have dampened risk appetite across all financial markets. With Bitcoin often moving in tandem with tech stocks, its decline has mirrored the struggles of companies like Tesla (NASDAQ:TSLA) and Nvidia (NASDAQ:NVDA).

Will Bitcoin Recover from This Bear Market?

While Bitcoin has experienced several bear markets in the past, it has always rebounded to reach new highs. The question now is how long this downturn will last.

Many experts believe that Bitcoin could stabilize around the $73,500 level, as suggested by John Glover, chief investment officer at crypto lending platform Ledn. However, if broader market conditions continue to deteriorate, BTC could face further downward pressure.

Despite the current pain, some investors see this as a buying opportunity. Historically, bear markets have provided long-term investors with the chance to accumulate Bitcoin at discounted prices before the next bull run.

Conclusion

The Bitcoin bear market has been especially brutal for newcomers who bought at the peak, with leverage and market volatility amplifying their losses. Institutional investors are also feeling the pressure, as Bitcoin ETFs and crypto investment products see significant outflows.

While Bitcoin’s long-term future remains promising, the short-term outlook is uncertain. Investors should remain cautious, keeping an eye on macroeconomic trends, regulatory developments, and broader market sentiment. As with all investments, risk management and patience are key to navigating the unpredictable world of cryptocurrency.

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