tl;dr
Over half of the 25 largest US banks are actively exploring or launching crypto-related products, marking a shift toward integrating digital assets into mainstream financial services. Early 2024 developments include Morgan Stanley enabling brokers to recommend Bitcoin ETFs, Charles Schwab planning B...
Over half of the 25 largest US banks are now actively exploring or launching crypto-related products, signaling a significant shift in mainstream financial services. A status chart from River dated August 8 highlights the transition of many firms from initial curiosity to tangible launches in both custody and trading sectors. This shift suggests digital asset offerings are progressively integrating into wealth management and capital markets.
Concrete developments in early 2024 illuminate this trend. Morgan Stanley, for instance, has been considering allowing its 15,000 brokers to recommend spot Bitcoin ETFs, developing suitability and allocation guardrails to expand distribution beyond unsolicited orders. Meanwhile, Charles Schwab plans to introduce Bitcoin and Ethereum trading on its platform, responding to strong client demand for consolidated asset views.
PNC has advanced on the banking front by partnering with Coinbase, enabling wealth and asset management customers to directly trade crypto through PNC accounts instead of separate platforms. Custody and tokenization projects are advancing simultaneously, with State Street preparing stablecoin launches and tokenized deposits aimed at enhancing settlement efficiency. State Street also targets tokenizing bonds and money market shares.
BNY Mellon appears prominently in regulatory filings and product developments, acting as administrator and cash custodian in ETF contexts and recently serving as custodian for Ripple’s RLUSD stablecoin reserves. Citi has explored the Solana blockchain to pilot next-generation financial services and tokenization solutions, with potential custody service launches planned for early 2025.
JPMorgan is notably active, initiating a pilot of a tokenized deposit token on the Base platform to enable instant dollar transfers. CEO Jamie Dimon disclosed plans to test both stablecoin services and the tokenized deposit pilot, despite his critical stance on cryptocurrencies. JPMorgan also recently allowed customers to buy crypto via Coinbase directly through its dashboard.
Collectively, these initiatives underscore that while banks are not fully opening the crypto floodgates, they are strategically preparing infrastructure such as ETF access, exclusive trading options for wealthier clients, third-party platform integrations, custody solutions, and tokenization experiments. Access remains often limited and uneven but expanding, clearly marking a strategic pivot from mere crypto observation to structured implementation and selective rollouts of digital asset products among the largest US financial institutions.