USDCrypto-Banking Weekly Recap: Banks Double Down on Crypto as Spot Access Expands Fast
BlackRock Launches Digital Shares for $150B Treasury Trust Fund with BNY Mellon as Distributor
BlackRock is launching digital shares for its $150 billion Treasury Trust fund, utilizing blockchain technology to manage share ownership records without holding cryptocurrency. BNY Mellon serves as the exclusive distributor for these digital ledger technology (DLT) shares, awaiting SEC approval. Institutional investors must invest a minimum of $3 million for initial purchase, with no cap on further investments. This innovation highlights blockchain's potential to enhance traditional finance through tokenization. BlackRock has established itself as a pioneer in integrating digital assets into traditional finance, previously launching the USD Institutional Digital Liquidity Fund, which became the largest tokenized money market fund at $2.5 billion. Additionally, the company's Spot Bitcoin ETF, approved in January 2024, has a market cap of $142.7 billion. Recently, BlackRock-supported Securitize introduced a new crypto index fund, bolstered by $400 million from Mantle, showcasing ongoing advancements in digital asset management.
Charles Schwab to Launch Spot Cryptocurrency Trading in Next 12 Months
Charles Schwab plans to launch spot cryptocurrency trading within the next 12 months, marking a significant shift towards digital asset acceptance in the investment industry. CEO Rick Wurster announced that this move reflects growing institutional interest, driven by a changing regulatory environment. Currently, Schwab provides indirect exposure to cryptocurrencies through ETFs and futures, but this new offering aims to attract its 36 million clients directly. Market analysts view this as a pivotal moment for institutional participation in digital currencies, especially as public companies' Bitcoin holdings increased by 16.1% in Q1 2025. As of May 1, 2025, Bitcoin's price stands at $96,520.87, with a market cap of $1.92 trillion and a dominance of 63.60%. Recent price changes include a 2.22% rise over 24 hours and 15.39% over 30 days. Schwab's entry could lead to new financial instruments and partnerships, enhancing market access for investors.
Morgan Stanley to Launch Crypto Trading on E*Trade by 2026, Targeting Retail Market
Morgan Stanley plans to launch cryptocurrency trading on its E*Trade platform by 2026, marking a significant move for a major U.S. bank into retail crypto access. The initiative is in early development, with potential partnerships with crypto firms for spot trading of assets like Bitcoin (BTC) and Ethereum (ETH). This expansion follows regulatory rollbacks under the Trump administration, which have encouraged banks to re-enter the crypto market. Currently, Morgan Stanley offers ETFs, options, and futures for affluent clients, but this effort could intensify competition with established crypto exchanges such as Coinbase and Kraken.
Goldman Sachs Expands Digital Asset Strategy, Focuses on Crypto and Tokenization
Goldman Sachs announced plans to significantly expand its digital asset operations, focusing on cryptocurrency and tokenization to meet rising client demand for these services. At the TOKEN2049 event, Global Head of Digital Assets, Mathew McDermott, emphasized the firm’s intent to enhance crypto lending and invest in tokenization, aiming to improve liquidity and asset management by converting real-world assets into digital tokens. The GS DAP® platform will be central to this strategy, facilitating real-time asset digitization and cross-platform interoperability. In a broader trend, major banks are integrating cryptocurrency services, with Morgan Stanley, Charles Schwab, and State Street planning to launch offerings by 2026, supported by a favorable regulatory environment under the current U.S. administration. Morgan Stanley is also partnering with crypto firms, while State Street, with $46 trillion in assets under custody, will introduce crypto custody services, highlighting the banking sector's commitment to cryptocurrencies.
Singapore Gulf Bank Launches 24/7 Fee-Free Crypto Clearing Network, SGB Net
Singapore Gulf Bank (SGB) has launched SGB Net, a 24/7 real-time clearing network that facilitates instant, fee-free cross-border payments for digital asset players. Aimed at addressing the increasing demand for efficient transactions, SGB Net allows a range of financial participants—from crypto exchanges to market makers—to conduct operations without traditional banking limitations. Key features include offshore corporate and personal accounts, automated payroll systems, and real-time vendor payouts, making it suitable for both startups and larger trading firms. The platform also provides access to liquidity with institutional-grade spreads and supports API-enabled fiat-to-crypto conversions. As traditional banks hesitate to serve crypto clients, SGB Net positions itself as a vital component of the digital economy.
SoFi Plans Crypto Comeback by Year-End Following Regulatory Shift
Fintech giant SoFi plans to reintroduce cryptocurrency investing by the end of 2025 after a regulatory shift influenced by the Trump administration. SoFi CEO Anthony Noto announced the move, highlighting a more integrated approach to embedding blockchain and crypto capabilities across its services, including lending and investing. The company previously exited the crypto space in late 2023 under federal scrutiny while holding a bank charter. With improved credit metrics, SoFi brought in 800,000 new customers in the latest quarter and recorded a 3.31% annualized charge-off rate for personal loans. Noto anticipates a favorable regulatory climate following recent guidance from the OCC. Additionally, a report from Fidelity predicts that, by 2025, several governments may start buying Bitcoin to establish reserves, legitimizing it as a store of value and potentially increasing its price significantly as more countries engage with cryptocurrencies.
Bitwise CIO Predicts Major Wirehouses Will Embrace Bitcoin ETFs by Year-End, Expecting Record Inflows in 2025
Bitwise CIO Matt Hougan anticipates that the major wirehouses—Merrill Lynch, Morgan Stanley, Wells Fargo, and UBS—will start facilitating access to Bitcoin ETFs by the end of 2025, potentially increasing availability fourfold. Despite initial slow adoption since the launch of U.S. spot Bitcoin ETFs in January 2024, Hougan expects record net inflows into these ETFs this year, buoyed by wirehouse support. As of April 30, 2025, Bitcoin ETFs have attracted just over $4 billion year-to-date, significantly trailing the $11.8 billion gained by the same period in 2024. Institutional interest in Bitcoin is surging, with major firms and hedge funds actively buying in. Key organizations like Coinbase and Fidelity offer custody solutions, while BlackRock encourages a 2% portfolio allocation to Bitcoin. The growing acceptance of Bitcoin, alongside regulatory clarity and strategic investments, suggests a promising outlook for the cryptocurrency’s future in finance.
This article has been refined and enhanced by ChatGPT.
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