PNC Bank has teamed up with Coinbase to allow its customers to engage in cryptocurrency trading as digital assets become more widely adopted by regulated financial institutions.

Following a period of cautious approach, US banks are now showing greater interest in cryptocurrencies due to former President Donald Trump’s backing for the sector. Trump appointed officials who were favorable towards crypto and supported legislation that benefited the industry. Additionally, he backed several crypto companies alongside his sons.

During Joe Biden’s tenure, leaders in the cryptocurrency space criticized banks for being reluctant to engage with them. In 2023, Signature Bank and Silvergate were shut down, creating a gap that PNC is now addressing.

Diving into Crypto

Recently, Washington has enacted legislation aimed at helping traditional investors and lenders enter the stablecoin market. This move was well-received by industry executives as Bitcoin’s price surged to a record high of USD 123,000, aligning with PNC’s goals. As a regional US bank with USD 400 billion in deposits, PNC aims to expand its services and compete with giants like JPMorgan Chase.

PNC’s partnership with Coinbase will enable it to cater to the increasing demand for secure and convenient access to digital assets. The deal also involves providing banking services to Coinbase as well. However, PNC has not yet disclosed a specific timeline for its crypto offerings.

Coinbase is a leading US crypto exchange that aims to reshape traditional finance by spending substantial amounts on lobbying efforts in Washington. It plans to extend beyond just trading platforms into banking services as the boundaries between these industries become increasingly blurred. Its crypto-as-a-service platform offers partners tools for custody and trading, which are typically expensive to develop from scratch.