Crypto Banking, Payments, and 2025

The crypto market is running red hot as 2025 approaches.

Bitcoin’s price last Thursday (Dec. 5) exceeded $100,000 for the first time. As of Wednesday (Dec. 11), the price of the digital asset remains above the $100,000 threshold.

The achievement reflects more than just speculative enthusiasm; it underscores the integration of cryptocurrencies into traditional finance, a trend bolstered by advances in blockchain’s usability.

The broader story lies in the utility of crypto and blockchain. Cryptocurrency payments have yet to fully materialize, and the pace of change could depend on how quickly regulators and policymakers can create an environment conducive to innovation.

See also: Crypto Is Minting Millionaires, but Its Payment Utility Remains Uncertain

Crypto Payments Push

PYMNTS has been following the potential of crypto’s utility within everyday payments, though widespread adoption has not yet caught fire.

“Crypto payments are still new territory for many consumers,” we wrote earlier. “Businesses should clearly communicate the steps involved, including which cryptocurrencies are accepted and any applicable fees. Offering educational resources or support channels can ease customer adoption.”

And the marketplace is working to close the gap.

Cryptocurrency payments firm Triple-A last Thursday (Dec. 5) announced an integration with Coinbase designed to let Coinbase users make payments to select merchants in the Triple-A network. The collaboration follows last week’s announcement that Coinbase integrated Apple Pay as a payment method for Coinbase Onramp, its service for building onramps into existing apps for fiat-to-crypto purchases, in a move designed to deliver easier onramping for the 60 million U.S. users of Apple Pay.

On Wednesday (Dec. 11), European cryptocurrency exchange WhiteBIT launched a debit card partnership with Visa billed as the first debit card allowing crypto transactions “with cash back benefits for everyone.”

Also on Wednesday, cryptocurrency giants Circle and Binance announced they are joining forces to promote the wider adoption of stablecoins. The collaboration will see Binance make USDC more available to its 240 million users, while also adopting USDC as a “vital dollar stablecoin” for its corporate treasury, per a release.

Regulatory Clarity

PYMNTS wrote last week about claims by FinTech and crypto investor Marc Andreessen that the two sectors are being “debanked” by U.S. financial institutions. The billionaire made the claim on Joe Rogan’s podcast, and it was later amplified by Elon Musk.

Those claims were further echoed by Coinbase, the U.S.-based cryptocurrency exchange, which reportedly accused the Federal Deposit Insurance Corp. (FDIC) of hindering cryptocurrency banking activity by halting efforts by lenders to offer — or consider — products and services in the digital assets space.

But the crypto banking landscape is rosier abroad. Deutsche Bank is now Crypto.com’s corporate banking provider in Singapore, Australia and Hong Kong. The partnership is expected to involve additional banking support and coverage in new countries as the collaboration evolves, according to a Tuesday (Dec. 10) release, potentially setting the partnership up for a U.S. debut.

The Crypto.com and Deutsche Bank news comes as the face of crypto regulation in the U.S. is poised to transform with the advent of President-elect Donald Trump’s new administration. As PYMNTS covered, David Sacks has been nominated to shape the administration’s artificial intelligence (AI) and crypto policies. Sacks has a resume long on regulatory skepticism, short on industry expertise.

Putting an exclamation point on the changing tide in Washington is that fact that, while speaking at a bitcoin conference in Abu Dhabi on Monday (Dec. 9), Donald Trump’s son Eric told the attendees, “You’re going to have the most pro-crypto president in the history of America. … Think about a president who isn’t going to allow bitcoin and cryptocurrencies to be overregulated and stifled.”

And on Monday, PYMNTS covered how, with the news Thursday (Dec. 5) that the U.S. licensed FV Bank is now supporting direct USDT stablecoin deposits to simplify cross-border transactions, banks can position themselves as the trusted gateway to the digital economy by partnering with stablecoin issuers or developing proprietary on-ramp solutions. Such integrations could also help banks tap into new revenue streams, such as fees for stablecoin transactions or value-added services like digital asset custody and compliance solutions.

Risks and Realities

At the same time, writing last month about what the future may hold for crypto, PYMNTS noted that deregulation carries some risks, especially if the boundaries around securities laws are pushed too far, triggering increased volatility in the market, putting unsophisticated investors at risk if they purchase unvetted or underregulated digital assets.

On Wednesday, it was highlighted here that in its newly released 2024 annual report, the U.S. Financial Stability Oversight Council (FSOC) took care to illustrate the risks, as well as the potential benefits, of crypto as it relates to traditional banking.

In its report, the FSOC proposed several actions to mitigate risks in the crypto sector, including legislation for stablecoins; authority over the spot market for crypto assets that are not classified as securities; supervision over crypto asset entities and subsidiaries; and continued efforts to inform consumers about the risks of cryptocurrencies, stablecoins, and other digital assets.