Walmart is moving straight into the bank lane with crypto companies and fintech players after President Trump opened the door for new financial actors, according to The Wall Street Journal. Ripple Chief Executive Brad Garlinghouse, who said last year that banks pushed his industry out, is now asking the administration for approval to form a bank as part of a wider scramble by crypto firms and retailers to get the legal status they need to run full-service financial operations. Coinbase and Wise are making the same move, and Amazon and Walmart are exploring a broader push into services that look and feel like offerings from a traditional bank. Trump-appointed regulators are signaling openness, and that shift has become a major point of tension between established banks and the rising group of crypto-aligned applicants trying to enter a field that has shut them out for years. The Comptroller of the Currency, Jonathan Gould, said at a Treasury-related conference last month that he wants crypto activity “done within the banking system,” as long as the law allows and regulators can keep conditions safe. Jonathan’s office oversees nationally chartered banks and sits at the center of this wave of applications that firms are filing to move into the bank world. Companies file trust charter applications to enter the banking system The filings landing on regulators’ desks are mostly national trust charter applications, which are different from a full bank charter. Trust companies cannot take deposits or issue loans. They hold assets and charge fees to safeguard them, and because they don’t accept deposits, they do not get federal insurance. The Wall Street Journal reported that twelve trust charter applications have been filed this year, the highest level in at least eight years. Ripple, Coinbase, and Wise are included in that group, and they were joined by Sony Bank, which is tied to the larger Sony corporation. The rapid pace set off alarm bells among large lobbying groups for the financial sector. They argue that allowing these companies to open any kind of bank structure without meeting the same heavy oversight will create uneven competition and potential financial risk. These groups say regulators have limited who can start a bank since the 2008-09 crisis, and they believe those limits were necessary to prevent dangerous behavior. The Bank Policy Institute recently sent letters to the Office of the Comptroller of the Currency asking the agency to reject the applications from Ripple, Wise and Sony Bank. The Independent Community Bankers of America also wrote in opposition. The BPI warned that approving Coinbase’s application “could significantly increase risks to the U.S. financial system.” Coinbase Chief Policy Officer Faryar Shirzad pushed back and said the group was only trying to guard the interests of traditional banks. Stablecoins bring new pressure on banks and drive regulatory fights Recent friction between applicants and banks has grown more obvious. Some crypto firms say they were victims of “debanking,” which includes being removed from accounts due to political pressure. Those claims helped prompt an executive order from President Trump aimed at stopping politically motivated account closures. The companies applying for charters say they want to offer fiduciary services and issue stablecoins, which are designed to keep a fixed value, so they can serve customers who need a regulated partner for crypto activity. The scramble for stablecoins is connected to deeper concern among banks that retailers might set up their own payment systems if stablecoins gain wide use. Amazon and Walmart were among the companies The Wall Street Journal said had been studying whether they should release a stablecoin. Their involvement would give them tools that look like services usually offered by a bank, which could cut out banks and credit-card companies altogether. Trump later signed the GENIUS Act , which gives the OCC the job of approving and monitoring stablecoin issuers. The act does not require a bank charter to issue stablecoins, but most issuers must be considered financial firms. That may push companies to partner with others instead of releasing their own coins. The Federal Deposit Insurance Corp. also said it would revisit industrial loan charters this year, a type of charter that has helped companies like Toyota finance customer purchases. The review is expected to look at whether these charters should be easier to obtain. Sharpen your strategy with mentorship + daily ideas - 30 days free access to our trading program
