After staying cautious, some major Wall Street firms are planning how to win more crypto Business, betting that President Donald Trump's support for the Industry will trigger a wave of IPOs, Stocks issuance, and convertible Bonds.

According to informed sources, Morgan Stanley previously had little influence in this area and is currently seeking potential clients for initial public offerings (IPOs). At Bank of America, executives in the investment banking division are discussing the possibility of facilitating trades for digital asset companies.

An informed source stated that the Royal Bank of Canada$Royal Bank of Canada (RY.CA)$is seeking to undertake more business after completing its first crypto trade at the end of last year.

Banks are seeking to establish deeper connections with crypto companies to avoid missing out on trades propelled by looser regulations under President Trump, who calls himself the "crypto president."

The crypto company Gemini, backed by billionaire Winklevoss twins, is the latest company considering going public as soon as this year; another is the crypto asset exchange operator Bullish, supported by billionaire Peter Thiel. Circle Internet Financial Ltd. and the cryptocurrency exchange Kraken have long wanted to go public.

Representatives from Morgan Stanley, Royal Bank of Canada, and Bank of America declined to comment.

During the campaign, Trump promised to make the USA the "Cryptos capital of the Earth". Since taking office, he has sought to completely reform the regulations that cooled down Cryptos activities during Biden's administration. Within days, Trump issued an executive order on digital assets, and the USA Securities and Exchange Commission (SEC) established a special working group on Cryptos, led by long-time industry advocate Hester Peirce. The White House's Crypto tsar, David Sachs, stated that he is exploring the feasibility of the new president establishing national reserves.$Bitcoin (BTC.CC)$of reserves.

Delayed IPO regrouping

This could help kick off a wave of IPOs that have been delayed for years due to government crackdowns on industry companies. Banks have also faced scrutiny, with regulators requiring some banks to suspend or delay planned or ongoing Crypto activities and provide more information.

So far, the business of raising funds through IPOs, equity financing, and Convertible Bonds for Crypto companies has mainly flowed to a relatively fixed group of lenders. However, the largest investment Banks have been relatively cautious in this field, choosing to participate selectively. The most notable listed companies in the Crypto space remain.$Coinbase (COIN.US)$ Goldman Sachs, JPMorgan, Allen & Co., and Citigroup are preparing for the heavily promoted direct listing in 2021.

Jefferies Financial is also active in the Cryptos trading sector, providing potential listing consulting services for the cryptocurrency exchange Bullish, along with JPMorgan. It is also one of the Banks collaborating with Figure Technologies Inc. for its IPO, which was co-founded by$SoFi Technologies (SOFI.US)$former CEO Mike Cagney, who co-founded the fintech company.$Moelis & Co (MC.US)$and Cantor Fitzgerald are also active in this field.

Although Morgan Stanley did not participate in the Coinbase deal, the Bank did assist the cryptocurrency exchange in selling Convertible Bonds last year. According to one informed source, the company is eager to participate if a future IPO wave becomes a reality.

IREN stated at that time that it hired Morgan Stanley in July this year to help evaluate the profit opportunities in the AI data market. IREN operates Datacenters that serve Bitcoin mining and AI Cloud Computing Service.

At the end of last year, Royal Bank of Canada helped arrange the issuance of Convertible Bonds for a crypto mining company.$CORE SCIENTIFIC INC (CORZR.US)$The bank's website shows that since the election, the number of Bitcoin and crypto issuers entering the market has increased.

One informed source stated that this Canadian bank had previously adopted a more conservative stance towards Cryptos and is now beginning to increase its efforts, but will screen its selected clients.

Banks are drafting a list of potential crypto IPO candidates, and the market generally holds an optimistic view towards the Industry. Earlier this year, this optimism pushed the largest and oldest digital token, Bitcoin, to record highs.

Signs of banks rekindling their interest have also appeared elsewhere, such as one senior Forex strategist now having the expanded title of Head of Digital Assets Research.$HSBC Holdings (HSBC.US)$

According to some insiders, as Bank of America prepares for more trading activities, the discussions in the company's investment banking division regarding Cryptos are intensifying, as the bank is eager to share in the hundreds of millions of dollars in fees that these trades could generate. The bank's CEO, Brian Moynihan, stated in an interview earlier this year that if regulations are established, Banks "will take a tough stance on Trade."

"We know how to enter this field," Moynihan said. "From a Trade perspective, I think you’ll see the Industry take action."

Editor/danial