Trump 2.0 is creating a new trend of integration in the financial sector: some Cryptos companies are considering applying for banking licenses, while some traditional Banks are contemplating issuing their own digital assets. This integration is accelerating as the Trump administration relaxes regulations on Crypto businesses and traditional banking giants.

The Wall Street Journal reports that the latest example includes several Crypto startups, such as Circle, BitGo, Coinbase Global (COIN), and Paxos, all of which are considering or have even planned to apply for a banking license in the USA in some form.

A spokesperson from Coinbase told the media, "Coinbase is actively evaluating this option, but no formal decision has been made at this time." Meanwhile, Bank of America (BAC.N) stated that it is willing to issue its own stablecoin if Congress passes relevant legislation. Bank of America is the second-largest lending institution in the USA, and its CEO, Brian Moynihan, mentioned in February of this year, "We would enter this business if they legislate to allow it."

Stablecoins are typically pegged to other assets (most commonly the US dollar) and can be used for fast, low-cost cross-border transfers or payments. By issuing stablecoins, Banks can capture emerging digital payment scenarios, improve business efficiency, and profit from various aspects such as payment fees, asset custody, and transaction matching. Banks also wish to reduce their reliance on traditional payment networks (like SWIFT) and serve customers with more convenient blockchain systems.

From Standard Chartered Bank to PayPal, Stripe, and the asset management giant Fidelity Investments, an increasing number of traditional Banks and payment service providers are also testing or considering deeper involvement in the stablecoin field. According to the Financial Times, Fidelity has begun testing its own stablecoin.

"Some traditional Banks will embrace this trend and directly offer Crypto-related products," said Mike Belshe, CEO of BitGo. "Meanwhile, Crypto companies are also moving closer to traditional finance; for instance, BitGo will provide more traditional financial services."

Last week, the Federal Reserve rescinded its previous guidance warning Banks against engaging in Crypto activities, marking the removal of the barrier between Banks and the Crypto world by the Trump administration. This means that Banks no longer need to obtain prior approval from the Federal Reserve when engaging in activities related to Cryptos.

The Trump administration hopes that Congress will pass a regulatory framework for stablecoins this year, which may also prompt some crypto companies to seek banking licenses, as this legislation may require stablecoin issuers to hold a charter or relevant licenses.

Circle stated in an email, "We have no intention of becoming a bank or any other institution that accepts deposits. However, we do intend to comply with the future regulatory framework for payment stablecoins in the USA, which may require registration for federal or state trust charters, or obtaining other non-bank licenses."

Bloomberg analysis pointed out that banking licenses may also become a means for crypto companies to hedge risks and enhance legitimacy during legislative delays. "A banking license is a privilege," said Daniel Hartman, a lawyer at the financial-focused firm Nutter and former legal advisor to the Boston Federal Reserve Bank. "Being accepted by the system is, in itself, a tremendous endorsement of credibility."

A banking license means being able to legally accept deposits, participate in clearing, enjoy central bank liquidity support, and significantly enhance credit endorsement. Moreover, if future stablecoin legislation requires issuers to be licensed financial institutions, applying in advance becomes a defensive strategy for "hedging uncertainty." For crypto companies, this is not only a need for legality and compliance but also a tool to attract user and investor confidence.

In recent years, some banks have attempted to carve out a niche market for crypto-related banking services. Especially during the pandemic, the popularity of Bitcoin and other digital assets surged, making this type of business quite profitable for a time.

However, this trend faced a significant blow after the collapse of the crypto exchange FTX in 2022 and the failures of crypto-friendly banks Silvergate and Signature Bank in 2023. In the eyes of regulators, these events made it a "taboo" for banks to walk the same path again.

But in the new Trump era, this taboo is gradually breaking down. An increasing number of fintech companies and banks are beginning to seek a piece of the pie in the crypto market, particularly in the stablecoin sector.

"We have wanted to do this product for ten years, and now we are finally realizing it," said Stripe CEO Patrick Collison last Friday on the X platform. The fintech company acquired the stablecoin platform Bridge in February and is testing stablecoin payment products for businesses outside the USA, United Kingdom, and EU.

Currently, PayPal, the largest fintech company issuing stablecoins, announced last week that it plans to offer an annualized yield of 3.7% for users holding its stablecoin (PYUSD) within its payment app Venmo. Coinbase recently also announced that it will not charge fees for users buying and selling this asset on its platform.

Circle, the issuer of the world's second-largest stablecoin USDC, recently announced that several banks, including Deutsche Bank, Banco Santander, and Standard Chartered, are assisting it in designing a new cross-border payment network, which is positioned as a competitor to SWIFT.

Last month, World Liberty Financial, a new crypto startup supported by Trump and his son, announced plans to collaborate with BitGo to issue a new stablecoin pegged to the dollar.

BitGo CEO Mike Belshe, discussing the rapid integration of the crypto industry with Wall Street since Trump's election, said, "If you had asked anyone six months ago, they wouldn't have thought we would be where we are today, but here we are."