The walls between Wall Street and Bitcoin have officially crumbled. According to groundbreaking research from River, a Bitcoin financial services firm, 60% of the top 25 US banks by assets are now offering, developing, or exploring Bitcoin-related services—from custody and trading to lending and advisory solutions.

This isn't incremental change. Three of the "Big Four" US banks—JPMorgan Chase, Wells Fargo, and Citigroup—controlling over $7.3 trillion in combined assets have all announced crypto initiatives. The fourth, Bank of America, just authorized 15,000+ wealth advisors to proactively recommend Bitcoin ETF allocations starting January 2026.

What changed? A perfect storm of regulatory clarity, institutional demand, and competitive pressure. The OCC's December 2025 guidance allowed banks to treat crypto trades as "riskless principal transactions"—reducing capital requirements and making Bitcoin desks as straightforward to operate as foreign exchange. Meanwhile, bank CEOs at Davos openly described crypto as "existential" to their business survival.

The River Research Data: Who's In, Who's Out

River's January 2026 analysis of the top 25 US banks by assets revealed a dramatic shift in institutional positioning. More than half have already launched Bitcoin services or announced concrete plans—a remarkable transformation from just 18 months earlier when most banks maintained strict anti-crypto policies.

The Big Four: $7.3 Trillion in Assets Moving Into Crypto

JPMorgan Chase: From "Fraud" to Trading Desk

JPMorgan's evolution represents perhaps the most dramatic about-face in banking history. CEO Jamie Dimon famously called Bitcoin "a fraud" and "worthless" in 2017, threatening to fire any employee caught trading it. By late 2025, the bank was actively considering offering crypto trading to institutional clients.

The shift has been gradual but unmistakable. In October 2025, JPMorgan announced institutional clients could use Bitcoin and Ethereum as collateral for loans. In November, the bank's asset management arm launched a tokenized money market fund. In December, Bloomberg reported JPMorgan's markets division was evaluating spot and derivatives trading products.

"I am not a fan of it. We are going to allow you to buy it, and we're not going to custody it. We're going to put it on statements for our clients. So I don't think you should smoke, but I defend your right to smoke. I defend your right to buy bitcoin, go at it." — Jamie Dimon, JPMorgan CEO, May 2025

JPMorgan has also launched Bitcoin-linked structured products, including a note tied to BlackRock's IBIT ETF that offers investors potential returns based on Bitcoin's four-year halving cycles. If IBIT hits preset prices by 2026, investors receive a minimum 16% return; otherwise, they gain leveraged exposure through 2028 with no upside cap.

Wells Fargo: Bitcoin-Backed Loans Go Live

Wells Fargo moved aggressively into crypto lending in Q4 2025, launching Bitcoin-backed loans for institutional and wealth clients. The service allows customers to use Bitcoin holdings or spot Bitcoin ETFs as collateral for credit facilities without liquidating their positions.

This follows Basel III reforms that reclassified Bitcoin holdings, improving capital treatment for banks offering crypto-backed lending. Wells Fargo has also significantly increased its Bitcoin ETF investments—SEC filings show the bank jumped from $26 million in Q1 2025 to over $160 million in Bitcoin ETF holdings, primarily in BlackRock's IBIT.

Citigroup: Custody Launch Targeting 2026

Citigroup has been quietly building crypto infrastructure for two to three years and plans to launch custody services in 2026. The bank will hold native digital assets like Bitcoin and Ethereum for institutional clients—a significant step given custody represents the foundation for broader crypto services.

Citi is evaluating both internally developed solutions and third-party partnerships. The bank's analysts have issued bullish Bitcoin outlooks, setting a 12-month target of $181,000 and citing strong institutional inflows and regulatory tailwinds under the Trump administration.

Bank of America: 15,000 Advisors Now Recommending Bitcoin

Bank of America represents a unique case—while it hasn't announced direct trading or custody services, it made a pivotal move in December 2025 by authorizing its massive wealth management network to proactively recommend Bitcoin ETFs.

This shifts Bitcoin from a niche request to a standard portfolio conversation. With over $1.7 trillion in client assets, even modest allocations could translate into significant capital flows toward Bitcoin ETFs.

First Movers: PNC and Morgan Stanley Lead Direct Access

PNC Bank: First Major Bank with Direct Bitcoin Trading

PNC Bank made history on December 9, 2025, becoming the first major US bank to offer direct spot Bitcoin trading through its own digital banking platform. The service, available to eligible PNC Private Bank clients, is powered by Coinbase's Crypto-as-a-Service infrastructure.

"This collaboration demonstrates how traditional financial institutions and on-chain-native companies can work together to expand access to digital assets in a safe and compliant way." — Brett Tejpaul, Co-CEO of Coinbase Institutional

The model is significant: PNC maintains the client relationship while Coinbase handles custody, trade execution, and compliance behind the scenes. This "bank UX, crypto-native backend" approach could become the template for traditional finance integration.

Morgan Stanley: E*Trade Crypto Trading in H1 2026

Morgan Stanley plans to enable direct Bitcoin, Ethereum, and Solana trading on its E*Trade platform in the first half of 2026—potentially the most significant retail crypto access point from a traditional brokerage. The $1.3+ trillion asset manager has partnered with Zerohash, a Chicago-based digital asset infrastructure provider, for custody and execution.

Morgan Stanley's wealth management head Jed Finn called the move "a transformative moment" and noted the firm plans to build a full wallet solution for custody and eventually explore stock tokenization to improve settlement efficiency.

Charles Schwab: $11.6 Trillion Ready for Bitcoin

Charles Schwab's planned entry into spot Bitcoin trading could be the most consequential for retail adoption. CEO Rick Wurster announced the $11.6 trillion asset manager would begin offering direct Bitcoin and Ethereum trading in 2026, targeting the first half of the year.

"We have lots of clients who have the vast majority of their assets at Schwab but are holding some at digitally native firms and keep asking us to launch this so they can bring their crypto assets to us." — Rick Wurster, Charles Schwab CEO

The numbers underscore the demand: Wurster noted that 20% of Schwab clients already own crypto elsewhere. With 37 million accounts and $11.6 trillion in client assets, even modest adoption could drive substantial trading volume through traditional brokerage rails.

Global Giants: UBS and BNY Mellon Join the Push

UBS: World's Largest Wealth Manager Eyes Crypto

UBS, overseeing $6.6+ trillion in assets, is exploring Bitcoin and Ethereum trading for select private banking clients. The Swiss banking giant plans to initially offer services in Switzerland before potentially expanding to Asia-Pacific and the United States.

This represents a dramatic reversal. UBS Chairman Axel Weber issued stark warnings about Bitcoin in 2017, and the bank repeatedly dismissed crypto as a "speculative bubble." Now, CEO Sergio Ermotti calls blockchain "the future of traditional banking" and predicts convergence between traditional finance and decentralized technologies.

UBS already has blockchain experience through its tokenization pilots—including a tokenized money market fund on Ethereum and UBS Digital Cash for multi-currency cross-border settlements. Adding direct crypto trading would complete the transition from cautious observer to active participant.

BNY Mellon: Tokenized Deposits Go Live

BNY Mellon, the world's largest custodian bank with $57.8 trillion in client assets, launched tokenized deposits in January 2026—creating on-chain representations of client balances that can move over blockchain rails while remaining fully backed by traditional bank deposits.

The service initially targets collateral and margin workflows, enabling near real-time settlement and improved liquidity for institutional clients. Early participants include major financial institutions like Citadel Securities, ICE, Circle, and Securitize. BNY has offered Bitcoin and Ethereum custody since 2022 and now provides comprehensive digital asset infrastructure.

The Regulatory Catalyst: OCC Opens the Floodgates

The banking industry's crypto pivot didn't happen in a vacuum. A series of regulatory developments in 2025 systematically removed barriers that had kept traditional institutions on the sidelines.

The "riskless principal" guidance was particularly significant. It allows banks to buy crypto from one customer and simultaneously sell to another—earning a spread without market risk. This mirrors how banks operate foreign exchange desks and reduces the capital burden of offering crypto services.

"More generally, the OCC has long maintained a technology-neutral stance with regard to permissibility. To the extent that national banks offer riskless principal crypto-asset transactions, their clients would be able to conduct more of their crypto-asset business within the confines of a regulated and supervised banking institution." — OCC Interpretive Letter 1188

$50 Billion in Bitcoin-Backed Credit: The Lending Boom

Perhaps the clearest sign of banking's crypto embrace: major US banks have issued over $50 billion in Bitcoin-backed credit lines since September 2025, according to industry reports cited by Michael Saylor of MicroStrategy.

Saylor noted that the top 10 US banks now facilitate crypto lending—up from zero in Q4 2024. This was driven by Basel III reforms that improved capital treatment for Bitcoin collateral and surging demand from institutions seeking non-custodial financing options.

What This Means for Crypto Investors

The banking industry's embrace of Bitcoin has several implications for individual and institutional investors:

Easier access, more competition: As banks compete with Coinbase, Robinhood, and dedicated crypto platforms, expect competitive pricing and integrated services. Buying Bitcoin could become as simple as buying a stock.

Portfolio integration: Bank advisors can now include Bitcoin in holistic financial planning. The recommended 1-4% allocation from major banks provides a framework for conservative inclusion.

Lending leverage: Bitcoin-backed loans let holders access liquidity without selling—potentially avoiding taxable events while maintaining upside exposure.

Institutional validation: Banks representing trillions in assets treating Bitcoin as a standard product removes a major credibility barrier for cautious investors.

Who's Still on the Sidelines?

Not every major bank has jumped in. River's research identified nine of the top 25 US banks without announced Bitcoin service plans:

These holdouts face growing competitive pressure. As Coinbase CEO Brian Armstrong noted after Davos, banking executives increasingly view crypto as "existential"—those who fail to offer services risk losing clients to competitors or crypto-native platforms.

The 2026 Outlook: Bitcoin as Banking Infrastructure

If current trajectories hold, 2026 will be the year Bitcoin transitions from "alternative asset" to standard banking product. Key milestones to watch:

H1 2026: Morgan Stanley E*Trade and Charles Schwab launch direct Bitcoin trading, opening access to tens of millions of retail investors through trusted brokerage platforms.

2026: Citigroup and State Street launch crypto custody, completing institutional infrastructure for major banks to offer comprehensive digital asset services.

2026: UBS decision on Bitcoin trading for wealth clients—if the world's largest wealth manager proceeds, it signals final acceptance from traditional finance's conservative core.

The direction is clear: Bitcoin is being woven into the operational fabric of mainstream finance. Banks may not have chosen crypto as their preferred innovation project, but client demand and competitive pressure have forced their hand.

This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risks, including potential loss of principal. Consult a qualified financial advisor before making investment decisions.