Fintechs and crypto companies seek bank charters for growth

Fintech and cryptocurrency companies are increasingly pursuing bank charters to expand their operations and gain credibility, anticipating a more favorable regulatory environment under the Trump administration. Industry experts note a surge in interest, with firms like SmartBiz recently acquiring a national bank charter, a move that could lower borrowing costs and enhance legitimacy. Alexandra Steinberg Barrage of Troutman Pepper Locke observed: “We have seen a lot more interest. We are working on several applications now.” Despite the potential for increased competition and innovation, challenges remain, including rigorous licensing processes and significant capital requirements, though optimism persists with regulators signaling support for new charters.