Major U.S. banks have officially ended their crypto skepticism and are now aggressively building Bitcoin ETFs, stablecoin infrastructure, and tokenized payment systems as essential revenue streams.
Story Highlights
- Morgan Stanley becomes first top-10 U.S. bank to file for Bitcoin and Solana spot ETFs, marking full Wall Street embrace
- JPMorgan pilots tokenized deposits and plans to accept Bitcoin as collateral through ETF exposure
- GENIUS Act establishes federal stablecoin framework while OCC grants trust charters to major crypto custodians
- BlackRock’s Bitcoin ETF suite generates over $245M in annual fees, proving crypto’s profitability for financial institutions
Major Banks Launch Direct Crypto Products
Morgan Stanley filed Form S-1 with the SEC in early 2026 to launch Bitcoin and Solana spot ETFs, becoming the first top-10 U.S. bank to manufacture its own crypto products rather than simply distributing others’ offerings. This milestone signals that major financial institutions no longer view cryptocurrency as reputationally toxic but as essential revenue generators. Bank of America simultaneously began allowing wealth advisers to recommend crypto allocations to clients, embedding digital assets into mainstream portfolio management.
Regulatory Framework Enables Banking Integration
The Trump administration’s GENIUS Act, signed in July 2025, established comprehensive federal regulations for USD-pegged stablecoins, creating clear compliance pathways for banks. The pending CLARITY Act, expected to pass the Senate by January 15, 2026, will end the previous “regulation by enforcement” era that deterred bank participation. Additionally, SEC rule changes in September 2025 streamlined commodity ETF approvals, while the OCC granted conditional trust charters to BitGo, Circle, Fidelity Digital Assets, Paxos, and Ripple in December 2025.
Tokenization Transforms Banking Infrastructure
JPMorgan Chase leads the charge in tokenized banking through its Kinexys platform, piloting stablecoin-based settlement tools and hybrid on-chain payment networks for institutional clients. The bank plans to accept Bitcoin and Ethereum as collateral via ETF exposures, with eventual expansion to direct spot holdings. This represents a fundamental shift from traditional settlement systems to 24/7 blockchain-based rails that reduce friction and enable instant value transfer.
Watch:
Proven Revenue Model Drives Adoption
BlackRock’s Bitcoin ETF suite became the asset manager’s top revenue source by late 2024, managing nearly $100 billion in allocations and generating over $245 million in annual fees. This success demonstrated sustainable institutional demand and created a clear business case for banks to enter the space directly. Approximately 60% of the top-25 U.S. banks are now building crypto custody and ETF servicing capabilities, transforming digital assets from experimental side projects into core banking infrastructure.
Wall Street's Crypto Debate Is Over As Banks Go All-In On BTC, Stablecoins, Tokenized Cash https://t.co/XSnylQMK70
— zerohedge (@zerohedge) January 10, 2026
The integration of cryptocurrency into traditional banking represents the final stage of mainstream financial adoption, driven by regulatory clarity, proven profitability, and competitive necessity. As banks transition from cautious observers to active participants, they’re positioning crypto infrastructure alongside derivatives and traditional ETFs as essential business lines rather than speculative ventures.
Sources:
Morgan Stanley files to launch Bitcoin and Solana ETFs as Wall Street embraces crypto
Cryptocurrency predictions 2026: Trump, Bitcoin, Stablecoin, Polymarket
