Crypto Titans Ripple, Circle & BitGo Storm Traditional Banking—Will Legacy Finance Survive?

Crypto's institutional heavyweights are mounting a full-scale assault on traditional banking. Ripple's regulatory wins, Circle's USDC dominance, and BitGo's custody firepower now position them to carve up Wall Street's lunch money.

Here's how they're flipping the script:

Ripple: The SWIFT Slayer

After settling its SEC battle, Ripple's ODL corridors now handle $15B/month—proving banks can't compete with near-free, near-instant cross-border rails. JPMorgan's Jamie Dimon still hates it (which means they're doing something right).

Circle Plays the Long Game

With USDC becoming the de facto stablecoin for 80% of institutional crypto flows, Circle's 'boring money' strategy lets them quietly eat T-bill yields while banks pay 0.01% on deposits. The ultimate regulatory arbitrage.

BitGo's Custody Coup

After securing NYDFS approval, BitGo now safeguards $64B in institutional crypto—proving that 'not your keys' doesn't scare hedge funds when the alternative is Coinbase's 75bps custody fee.

The bottom line? Crypto's building the pipes while banks argue about branch decor. By 2026, the 'innovator's dilemma' won't be a theory—it'll be an obituary for any bank still manually processing wires in 2025.

Banking convergence accelerates

According to the Financial Times, Kraken co-CEO Arjun Sethi described the expansion as “a natural convergence,” with the exchange planning to launch debit and credit cards by month-end.

Circle, a New York-based stablecoin issuer, indicated that obtaining a national bank trust charter from the Office of the Comptroller of the Currency WOULD be a “a meaningful step” in incorporating crypto into the larger financial system.

Currently, only Anchorage Digital holds a national bank charter among crypto companies.

“It’s a 180 from where a lot of these crypto companies started, saying ‘we don’t need banks, we don’t need laws, we’re above it all,'” said Max Bonici, partner at Davis Wright Tremaine.

Stablecoin legislation drives banking interest

National trust banks can process payments but cannot provide loans or accept direct deposits from customers. The charter removes requirements for individual state licenses and improves access to the financial system.

The banking push precedes the debate in Washington on stablecoin legislation, which would bring these dollar-pegged tokens closer to traditional finance.

Stablecoin regulation would be strengthened under the planned Genius Act, which would also make them more closely tied to the U.S. Treasury’s backing.

Under the proposed system, stablecoins will only be issued by OCC-licensed non-bank organizations and regulated banks. To maintain stablecoin reserves directly with the Federal Reserve, Ripple also registered for a master account, according to CEO Brad Garlinghouse.

Crypto integration is something that traditional fintech organizations are also pursuing. In the fall, Robinhood, which last year received more than half of its transaction revenue from cryptocurrency, intends to launch banking services.

CEO Vlad Tenev aims to provide comprehensive financial services, encompassing tax planning and estate planning.

London-based Revolut, which generates substantial revenue from crypto trading, has long-term ambitions for a U.S. banking license. Klarna CEO Sebastian Siemiatkowski plans to transform the consumer lender into a crypto company.

Large banks, including Bank of America, are preparing to issue stablecoins once U.S. regulatory frameworks are finalized.