Banks Offering Bitcoin Services in 2025
- Joshua Lory
- Mar 18
- 4 min read
The landscape for Bitcoin services within traditional banking is evolving rapidly, driven by regulatory shifts and institutional interest. This note provides a comprehensive analysis, considering the repeal of SAB 121, OCC letter 1183, the digital asset executive order, and the strategic Bitcoin reserve, as of March 18, 2025. We explore which banks will likely be first, the services they’ll offer, their operational mechanisms, benefits for holders and non-holders, and how Bitcoin can enhance traditional financial products, drawing parallels with Newmarket Capital’s innovations.
Regulatory Context
The repeal of SAB 121, effective for annual periods beginning December 15, 2025, with early adoption permitted, removes accounting burdens for entities safeguarding crypto assets, making it easier for banks to offer custody services (SEC rescinds SAB 121). OCC letter 1183, issued in March 2025, confirms banks can engage in crypto-asset custody and stablecoin activities without prior supervisory nonobjection, reducing regulatory hurdles (OCC Interpretive Letter 1183). President Biden’s March 2022 executive order, “Ensuring Responsible Development of Digital Assets,” sets a framework for consumer protection and financial stability, influencing banks’ cautious approach (Biden’s Digital Assets EO). The strategic Bitcoin reserve, announced by President Trump in March 2025, treats Bitcoin as a reserve asset, potentially legitimizing it further (Strategic Bitcoin Reserve EO).
Which Banks Will Be First?
Research suggests major global banks with existing crypto engagements will lead. JP Morgan, despite CEO Jamie Dimon’s criticisms (e.g., calling Bitcoin a “Ponzi scheme” in January 2025), has invested in blockchain, launching JPM Coin in 2019 for institutional settlements (JP Morgan Crypto Insights). Citigroup, considering crypto trading and custody since 2021, partnered with Metaco in 2022 for Bitcoin custody and launched Citi Token Services in 2023 for tokenized deposits (Citi Crypto Services). Standard Chartered, offering crypto custody in Europe and the UAE by 2025, became one of the first global banks for spot crypto trading in 2024 (Standard Chartered Crypto Custody). U.S. Bank, announcing crypto custody in 2021, is also a contender (U.S. Bank Crypto Offerings). These banks’ infrastructure and regulatory compliance make them likely first movers.
Services Offered
Banks are expected to offer a suite of services, reflecting current trends:
Custody: Secure storage, with banks like Standard Chartered using regulated entities for institutional clients (Standard Chartered Custody).
Buying and Selling: Platforms integrated with banking apps, similar to Cash App’s Bitcoin features (Cash App Crypto).
Trading: Advanced features like margin trading, following Citigroup’s considerations for institutional trading (Citi Crypto Trading).
Lending and Borrowing: Loans using Bitcoin as collateral, inspired by Newmarket Capital’s Battery Finance, which completed its first deal in November 2024 (Newmarket Battery Finance).
Staking Options: Allowing customers to stake Bitcoin, as seen with Wirex’s offerings (Crypto-Friendly Banks).
Money Transfer and Exchange: Facilitating Bitcoin transactions, leveraging blockchain for faster, cheaper transfers.
Debit Cards: Cards linked to Bitcoin, like Wirex’s Mastercard-supported cards (Wirex Services).
Operational Mechanisms
Custody: Banks will partner with or develop secure platforms, ensuring compliance with regulations. Standard Chartered’s Luxembourg-based custody, for instance, adheres to EU standards (Standard Chartered EU Custody).
Buying and Selling: Integration with exchanges or proprietary platforms, allowing customers to trade via banking apps.
Trading: Platforms may include margin trading, subject to regulatory approval, following Citigroup’s cautious approach (Citi Crypto Considerations).
Lending and Borrowing: Loans where Bitcoin is collateral, without marking to market, reducing volatility, as seen in Newmarket’s strategy (Newmarket Loan Strategy).
Benefits for Bitcoin and Non-Bitcoin Holders
Bitcoin Holders: Increased trust from banking involvement, better integration with traditional finance, and access to new products like loans using Bitcoin as collateral. For example, Battery Finance’s approach offers stability (Newmarket Bitcoin Loans).
Non-Bitcoin Holders: Easy market entry through trusted banks, new investment options via ETFs or trading platforms, and access to innovative products, enhancing portfolio diversification (Citi Bitcoin Tipping Point).
Enhancing Traditional Financial Products
Drawing from Newmarket Capital’s Battery Finance, launched in November 2024, banks can integrate Bitcoin into loans, using it as collateral without marking to market. This approach, combining real estate with Bitcoin, offers uncorrelated downside protection and inflation hedging (Newmarket Battery Finance Details). Banks could extend this to mortgages or corporate financing, potentially reducing costs and increasing returns for both lenders and borrowers.
Comparative Table of Expected Services
Bank | Custody | Buying/Selling | Trading | Lending/Borrowing | Staking | Debit Cards |
JP Morgan | Likely | Possible | Possible | Possible | Unlikely | Unlikely |
Citigroup | Likely | Possible | Likely | Possible | Unlikely | Unlikely |
Standard Chartered | Yes | Possible | Likely | Possible | Possible | Possible |
U.S. Bank | Yes | Possible | Possible | Possible | Unlikely | Unlikely |
This table reflects current engagements and regulatory readiness as of March 2025, with Standard Chartered showing the most advanced offerings.
Conclusion
By March 2025, major banks are poised to offer Bitcoin services, driven by regulatory ease and institutional demand. These services will benefit holders and non-holders alike, while enhancing traditional products through innovative integrations, potentially reshaping the financial landscape.
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