PNC Bank has joined forces with Coinbase to allow its customers to engage in cryptocurrency trading as the use of digital assets among regulated US financial institutions increases.

Following a period of hesitation, US banks are now more open to cryptocurrencies because of President Donald Trump’s backing for digital assets. Trump appointed officials who were favorable towards the industry and supported legislation beneficial to crypto businesses, including his sons.

Under Joe Biden’s administration, cryptocurrency leaders criticized banks’ reluctance to work with them. In 2023, Signature Bank and Silvergate closed down, leaving a gap that no other lenders filled until now.

Beyond Traditional Finance

Earlier this week, Washington enacted a bill aimed at helping traditional investors and banks enter the stablecoin market. This news was welcomed by industry executives as Bitcoin’s price reached an all-time high of USD 123,000, reflecting PNC’s objectives. The bank, which holds USD 400 billion in deposits, is keen on expanding its reach to challenge competitors like JPMorgan Chase. JPMorgan Chase is exploring lending against its clients’ crypto holdings, and Standard Chartered began allowing institutional clients to trade spot Bitcoin and Ethereum.

PNC Bank indicated that the collaboration with Coinbase would facilitate secure and convenient access for customers to digital assets while also offering banking services to the cryptocurrency exchange. The exact timeline for PNC’s crypto launch remains undisclosed.

Coinbase is a prominent US-based crypto exchange, striving to alter perceptions of digital assets within traditional finance by investing millions in lobbying efforts. The company intends to venture into banking services as the boundaries between these industries become increasingly blurred. Its crypto-as-a-service platform provides partners with custody and trading tools that would otherwise be costly to develop from scratch.