In a major new development that will have a massive impact on both the crypto and banking sectors, US banks have just been given approval to broker cryptocurrency trades for their customers. In other words, US banks can now offer crypto services in a manner similar to traditional brokerage activities. In a twist of irony, banks have historically been among the biggest opponents of the crypto sector – now they may become among the biggest deal makers for the asset class.
The green light came from The Office of the Comptroller of the Currency [OCC], stating that US national banks may legally conduct “riskless principal” transactions in crypto-assets. The OCC directive, dated 9 December, statesthat banks can purchase crypto and immediately resell it to a customer without incurring market exposure, thereby placing crypto brokerage activity under established banking functions.
As AMB Crypto reported, at least four cryptocurrencies will be allowed to be brokered by US banks: Bitcoin, Ethereum, XRP, and Solana.
The OCC letter came just one day after the Commodity Futures Trading Commission [CFTC] launcheda pilot program, allowing Bitcoin, Ethereum, and USDC to be used as collateral in US derivatives markets.
The dam just broke
Jump starting this, the $400 billion US bank PNC made history by becoming the first major US bank to offer direct Bitcoin trading. This is done through a partnership with the US cryptocurrency exchange Coinbase.
The CEO of the crypto research firm 51Insights explained:
“Here’s what just happened: PNC partnered with Coinbase to integrate “Crypto-as-a-Service” (CaaS) directly into their private banking platform. Cients can now buy, sell, and hold Bitcoin without ever leaving their bank dashboard. This is huge. For years, the “big banks” (JPM, BoA, Wells) have kept crypto at arm’s length, hiding behind regulation and risk. PNC just broke that dam.”