Wall Street banks are strategically shifting toward the crypto sector. Under President Donald Trump’s pro-crypto administration, they anticipate a surge in initial public offerings (IPOs) and other capital market activities.
According to a Bloomberg report, major financial institutions, including Morgan Stanley, Bank of America, and Royal Bank of Canada (RBC), are reassessing their positions and actively seeking new business opportunities within the digital asset space.
For years, regulatory uncertainty kept large investment banks at bay, with many hesitant to engage in crypto-related deals.
However, Trump’s administration has set a new tone with its executive order on digital assets. Establishing a U.S. Securities and Exchange Commission (SEC) task force led by crypto-friendly commissioner Hester Peirce is also seen as a positive shift in the regulatory climate.
White House crypto czar David Sacks has also indicated that discussions are underway about the feasibility of a national Bitcoin reserve.
Wall Street Banks Coming In Crypto: Is Trump A Blessing?
This policy shift has prompted banks to prepare for a flood of delayed IPOs and equity offerings from crypto firms eager to tap into public markets.
Companies such as Gemini, Bullish, Kraken, and Circle have already begun preparations for IPOs or are renewing their ambitions in light of the hope brought by President Donald Trump’s administration.
Meanwhile, Klarna, a major Swedish fintech company, is pursuing crypto ahead of its highly anticipated April IPO.
Morgan Stanley, which previously had a limited presence in the crypto space, is now proactively courting clients interested in going public.
Similarly, Bank of America executives are internally discussing plans to facilitate deals for crypto firms, seeing an opportunity to generate significant advisory and underwriting fees.
RBC, which has historically been cautious about crypto, has also arranged a convertible bond sale for Bitcoin mining company Core Scientific and is reportedly evaluating more opportunities.
Another major financial institution, HSBC, has also signaled growing interest by appointing a head of digital assets research within its foreign exchange division.
JPMorgan, Jefferies Financial Group, and Cantor Fitzgerald are among the banks already involved in crypto deals. In fact, JPMorgan advised Bullish on its potential listing.
Figure Technologies, a fintech firm specializing in blockchain-based lending solutions, is another company preparing for an IPO. Several banks are competing to secure underwriting rights for it.
Trump’s Crypto Policies Reshape the Financial Landscape
Under the Biden administration, regulatory scrutiny led to the postponement of numerous crypto IPOs, with banks forced to pause their involvement in digital asset deals due to heightened oversight.
However, Trump’s more lenient approach has reignited confidence in the sector, leading to a notable shift in Wall Street’s stance.
Trump’s pro-crypto rhetoric at the Bitcoin 2024 Conference, where he promised to make the U.S. the “crypto capital of the planet,” has emboldened industry participants.
His administration’s actions, including rapidly establishing a dedicated SEC crypto task force, signal a break from previous regulatory hurdles that had slowed institutional adoption.
Bank of America CEO Brian Moynihan recently commented that traditional banks will aggressively enter the sector if clearer regulations are established.
As Moynihan said in a CNBC interview:
“We know how to enter the field. […] From the transactional side, I think you’ll see the banking industry make moves.”
Notably, on February 4, President Donald Trump signed an executive order directing the Treasury and Commerce Departments to develop a plan for a U.S. sovereign wealth fund within 90 days.
Many see this move as beneficial to the crypto space; even Senator Cynthia Lummis called it an “₿ig deal.”
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