According to Galaxy Digital, the world's top four custodian banks will offer digital asset services by 2025. Find out how the new Trump administration and crypto-friendly regulations could boost this trend.
In a recent report, investment firm Galaxy Digital projected that the world’s top four custodian banks – BNY Mellon, State Street, JPMorgan Chase and Citigroup – will offer custody services for digital assets by 2025.
The firm's prediction is based on the expectation that the U.S. Office of the Comptroller of the Currency (OCC) will create a regulatory framework which will allow national banks Safekeeping cryptocurrencies and other digital assets.
With the start of the new administration of President Donald Trump, who took office on January 20, the crypto community has raised expectations for a favorable regulatory framework that will open the doors to new opportunities in the sector.
Although cryptocurrencies were not mentioned during Trump's inauguration speech, the 47th President of the United States has repeatedly expressed his view that these technologies are essential to maintain the United States' global leadership. The crypto community expects that in the coming weeks, the new government will reveal concrete plans to drive innovation in this sector.
The role of the OCC and the new administration
The OCC, a key agency in US banking regulation, could play a pivotal role in banks' adoption of digital assets.
According to Galaxy Digital, this year, the agency could establish a regulatory pathway for national banks to hold cryptocurrencies, opening the door for the four traditional custody giants to enter this digital financial world.
“The Office of the Comptroller of the Currency (OCC) will create a pathway for national banks to hold digital assets, leading to the world’s top four custodian banks offering digital asset services: BNY, State Street, JPMorgan Chase and Citi.”, he pointed the Galaxy Digital.
This projection aligns with recent statements by the new acting chairman of the Federal Deposit Insurance Corporation (FDIC), who has promised Addressing the “debanking” of crypto companies.
As explained by this outlet, this term “debanking” refers to the exclusion of cryptocurrency companies from the traditional banking system, a problem that has plagued the industry over the past few years and which the new Trump administration has promised to address. If the FDIC and other regulatory agencies take a friendlier approach towards cryptocurrencies, major banks are likely to feel more comfortable offering services related to these digital assets.
The 4 main custody banks are already making progress in the crypto industry
Although Galaxy Digital's prediction refers to 2025, the four banks mentioned have already made significant steps in the world of cryptocurrencies and blockchain technology.
BNY Mellon, which is the oldest bank in the United States, has been developing a cryptocurrency services platform and has invested in Bitcoin ETFs. In addition, the bank has shown interest in the tokenization of traditional assets, suggesting that it is prepared to integrate digital assets into its service offering if regulations change under the new administration.
For its part, State Street has been actively exploring institutional cryptocurrency custody and tokenization. In 2023, the bank launched an institutional-grade pilot service for custody of digital assets, indicating that it is moving towards the adoption of these emerging technologies.
Likewise, JPMorgan Chase, despite initial criticism from its CEO Jamie Dimon towards Bitcoin and cryptoassets, has been one of the most active banks in the blockchain space. The bank has developed its own blockchain network, as well as a digital currency called JPM Coin, while also exploring the tokenization of financial assets.
Lastly, Citigroup The bank has also been actively researching cryptocurrencies and blockchain technology, using public networks such as Avalanche for asset tokenization and private funds. Additionally, the bank has been exploring digital asset investment products, positioning it as a key player in this emerging industry.
Crypto community expectations rise in the Trump era
The crypto community has high expectations for the new Trump administration. Although the president did not mention cryptocurrencies during his inauguration speech, he has repeatedly expressed his support for technological innovation and his belief that cryptocurrencies are essential to America’s global leadership.
In previous statements, Trump has said that cryptocurrencies can be a tool to strengthen the US economy and compete with other technological powers, such as China. However, while he has made several promises and, in line with this, pro-crypto appointments, no clear path has been laid out for his administration to address key issues, such as regulating stablecoins and creating a strategic Bitcoin reserve.
However, if Galaxy Digital’s prediction comes true, 2025 could mark a turning point for the cryptocurrency industry. The entry of major custodian banks into this digital world would not only legitimize digital assets, but could also attract institutional investors who have so far been reluctant to participate in this market.
Moreover, bank custody of digital assets could solve one of the industry’s biggest challenges: security. Banks have decades of experience in protecting financial assets, and their involvement in the crypto space could boost investor confidence.
