From Hostile to Bullish: Why U.S. Banks Are Racing Into Bitcoin Services

The landscape of traditional banking’s relationship with cryptocurrency has undergone a dramatic reversal. Recent developments confirm what many in the industry suspected: major U.S. financial institutions are no longer sitting on the sidelines. According to data from Bitcoin financial services firm River, 60% of the top 25 U.S. banks have already launched or publicly signaled plans to offer Bitcoin-related services. This institutional acceleration marks a fundamental shift in how Wall Street views digital assets—a transformation that becomes even clearer through conversations happening in elite financial circles.

Brian Armstrong’s Davos Moment: What Banking Executives Are Really Thinking

The turning point in sentiment became apparent when Coinbase CEO Brian Armstrong attended the World Economic Forum in Davos earlier this year. His conversations with banking leaders revealed something striking: the hostile tone that once dominated boardroom discussions about crypto has largely evaporated. According to Armstrong, most of the banking CEOs he encountered have fundamentally shifted their stance. “Most of them are actually very pro-crypto and are leaning into it as an opportunity,” he noted at the forum.

What makes this even more significant is the candor of some executives. One CEO from a top 10 global bank told Armstrong that crypto had become their organization’s number one priority, viewing it as existential to their future competitiveness. This isn’t casual interest—it’s strategic urgency. The contrast with previous years couldn’t be starker, when U.S. banks were widely accused of deliberately restricting access to financial services for crypto companies under what became known as Operation Chokepoint 2.0.

The Big Four Banks Are Taking Concrete Steps

The shift from rhetoric to action is most visible among America’s largest financial institutions. Among the Big Four U.S. banks, three have made tangible moves:

JPMorgan Chase is actively evaluating cryptocurrency trading services for clients. Wells Fargo has already begun offering Bitcoin-backed lending products tailored for institutional investors. Citigroup is advancing its infrastructure around crypto custody solutions. Together, these three institutions manage over $7.3 trillion in assets, giving them significant influence over market structure and institutional flows.

The momentum extends beyond the Big Four. UBS, which maintains extensive U.S. operations, recently made headlines when Bloomberg reported the bank is evaluating Bitcoin and Ether trading capabilities for high-net-worth clients. This continued expansion of access points demonstrates how quickly competitive dynamics are reshaping the banking sector’s crypto strategy.

The Stablecoin Question: Where Banks Draw the Line

Despite the growing embrace of Bitcoin, major financial institutions have maintained a notably cautious posture regarding certain digital assets. Particularly contentious is the category of yield-bearing stablecoins, which banks argue could destabilize the financial system by competing directly with traditional bank deposits and money market funds. This measured skepticism reveals an important nuance: while institutional banking has accepted Bitcoin as a legitimate asset class, the adoption remains selective rather than comprehensive. The distinction matters—it suggests banks are making strategic choices about which crypto infrastructure to support and which risks to avoid.

Competitive Pressure May Force Lagging Banks Into Action

Not every major U.S. bank has joined the Bitcoin wave yet. Bank of America, the nation’s second-largest bank with over $2.67 trillion in assets, has yet to formally announce cryptocurrency strategies, according to River’s assessment. Similarly, Capital One (approximately $694 billion in assets) and Truist Financial (roughly $536 billion in assets) remain publicly uncommitted to crypto initiatives.

However, industry analysts note that this positioning may prove temporary. As competitors establish Bitcoin trading desks and custody infrastructure, the competitive calculus shifts. Banks that have abstained may find themselves unable to serve an increasingly crypto-exposed institutional client base. The strategic imperative facing lagging institutions is becoming clearer: adapt or risk losing market share to more forward-thinking rivals.

Bitcoin as Banking Infrastructure: The Bigger Picture

What these developments ultimately reflect is a profound reconceptualization of Bitcoin’s role within financial markets. The narrative has shifted from speculative asset to institutional infrastructure. With spot Bitcoin ETFs now deeply embedded in U.S. markets and custody standards continuing to mature, banks face mounting pressure to position themselves at the center of institutional crypto flows rather than at the margins.

For leaders like Brian Armstrong, this institutional awakening validates years of advocacy. As traditional finance gears up for deeper Bitcoin integration, the technology that was once dismissed by banking establishment is becoming strategically essential. For the banking sector, crypto is no longer optional—it’s becoming core to competitive strategy and institutional relevance.