Major U.S. Banks Move into Bitcoin: Over Half Offering or Planning Services
A River-funded study of the top 25 U.S. banks by assets finds nearly 60% are offering or planning Bitcoin services such as custody, trading and client-facing offerings. Notable moves: JPMorgan Chase is preparing Bitcoin trading; PNC Group already provides trading and custody; BNY Mellon, U.S. Bank and others offer custody to select clients; UBS (U.S.), Charles Schwab, HSBC and State Street have announced or plan initiatives. Some access remains limited to high‑net‑worth or institutional clients. Nine big banks — including Bank of America, Capital One, Truist and TD (U.S.) — have not announced products, though Bank of America has signaled limited crypto allocations and will cover spot BTC ETFs. Drivers include recent spot BTC ETF approvals, clearer regulatory guidance and changes in capital-rule interpretations that lowered custody costs. Banks are pursuing pilots and partnerships with crypto specialists to provide custody, reporting and trading while managing compliance and operational risk. For traders: expect increased institutional flows and deeper liquidity, improved custody and reporting transparency, and potentially greater mainstream access to Bitcoin via bank accounts and statements. Regulatory clarity remains the key variable; rollout will be gradual with some banks cautious and others accelerating.
Bullish
The move by major U.S. banks toward offering Bitcoin custody, trading and client-facing services is likely bullish for BTC price over both short and long horizons. Short-term: announcements and pilot launches typically spur buy-side interest and can trigger immediate inflows as institutional clients reallocate or test access, improving liquidity and reducing execution costs. Spot BTC ETF approvals and bank participation lower barriers for large, regulated investors; market participants often respond with positive price action on such clarity and new distribution channels. Medium-to-long term: broader bank custody and reporting improve institutional confidence, reduce perceived custody counterparty risk, and integrate crypto into traditional balance-sheet and client offerings, supporting sustained demand. However, the bullish effect is moderated by several factors: access limits (many services initially for HNW or institutional clients), staggered rollouts, and the central importance of regulatory clarity—negative regulatory developments could reverse gains. Overall, the net effect is positive for Bitcoin: increased institutional flows, deeper liquidity and improved market structure should support upward price pressure, though timing and magnitude will depend on the pace of bank rollouts and regulatory outcomes.