Written by: Blockchain Knight

Recently, BitGo released a significant report titled "Crypto Infrastructure for Banks," here are the key points distilled.

By 2025, digital assets will have entered the stage of scaled development, becoming the core track for modern financial institutions, redefining the modes of bank deposit-taking, revenue generation, and cross-border capital flows.

Technologies such as stablecoins, tokenization, and digital custody, once experimental, have now become essential infrastructures for financial institutions, transforming banks’ entry into the digital asset field from an option to a strategic necessity.

Currently, the trend towards institutional layout in the cryptocurrency asset sector is evident, with top global financial institutions like BlackRock, Fidelity, VISA, and JPMorgan actively investing in areas including tokenized funds, stablecoin settlements, and crypto trading.

Industry data shows that the number of global cryptocurrency asset owners has reached 716 million, with monthly active users between 40 to 70 million, an increase of about 10 million over the last year.

Assets under management for crypto ETFs exceed $225 billion, with BlackRock's Bitcoin ETF becoming the fastest-growing ETF on Wall Street.

Stablecoins have performed outstandingly, with monthly settlement volumes frequently exceeding $1 trillion, and trading volumes comparable to traditional card organizations, reflecting a shift in the industry from speculation to practical applications.

At the same time, more than half of America’s leading banks are piloting or assessing digital asset businesses, with Generation Z’s acceptance of bank crypto services (17%) significantly higher than the overall level (9%).

The improvement of the global regulatory framework has cleared policy obstacles for banks to enter the arena. The United States passed the GENIUS Act in July 2025, clearly stating that banks can become compliant stablecoin issuers, with the CLARITY Act pending Senate approval.

The EU has implemented the MiCA framework, while Singapore and Hong Kong have strengthened custody rules and introduced licensing for cryptocurrency exchanges, creating a clear and unified regulatory framework globally.

In terms of demographics, 14% of investment portfolios for Americans under 43 are allocated to crypto assets, compared to only 1% for those over 44, indicating that demand from younger groups is driving the demand for bank crypto services.

From a commercial value perspective, crypto services can retain customer deposits and expand international business, while blockchain technology can also reduce operational costs and improve liquidity management efficiency.

Digital assets open various revenue channels for banks and are highly compatible with existing business operations.

Banks can earn service fees, custody income, and exchange spreads through stablecoin businesses; obtain commissions and spreads from crypto trading; extract commissions through staking services; offer digital asset treasury services for custody and reporting fees; and leverage stablecoins for cross-border remittances to earn exchange and settlement spreads.

To enter the digital asset space, banks need to build appropriate core infrastructure, with each module based on a programmable blockchain.

Additionally, they need to set up facilities for staking, wealth management, financing, lending, and stablecoin issuance, aligned with the development of tokenization, with this sector expected to reach $23.4 trillion by 2033, becoming a significant growth point for wealth management business.

Banks can operate digital asset businesses under two compliant models: one is to rely on their own licenses and established KYC/AML systems, extending compliance processes and controlling compliance risks; the other is to leverage third-party licensed institutions, outsourcing compliance technology work to transfer operational risks and reduce investments, allowing for rapid service launch.