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Crypto & the De-Banked: Major Banks Respond to a Rapidly Evolving Landscape

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  //business-finance.news-articles.net/content/202 .. nks-respond-to-a-rapidly-evolving-landscape.html
  Published in Business and Finance on Wednesday, December 10th 2025 at 20:41 GMT by CoinTelegraph

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Crypto and the De‑Banked: How Major Banks Are Responding to a Rapidly Evolving Landscape

Cointelegraph recently published an in‑depth piece that explores the intersection of the cryptocurrency boom, financial inclusion, and the strategies of the world’s biggest banks. The article, titled “Crypto Among Sectors: The De‑Banked and Major Banks”, highlights how digital assets are reshaping traditional banking models, empowering the unbanked, and prompting institutional players to rethink their core business models.

1. The Crypto‑in‑clusion Imperative

At the heart of the story is a simple fact: more than 1.7 billion adults worldwide still lack access to basic banking services. For many of them, traditional financial infrastructure is either too costly, geographically inaccessible, or subject to political instability. Cryptocurrencies, by virtue of being borderless, low‑cost, and interoperable, have emerged as a potential “bridge” between the de‑banked and the global economy.

The article notes several case studies where crypto has already made an impact:

• Remittances in the Caribbean: A small community in Jamaica uses the stablecoin USDC to receive salary deposits from relatives abroad, cutting transaction fees from 6–10 % to less than 1 %.
• Micro‑loans in Sub‑Saharan Africa: A Kenyan fintech, Luno, has partnered with a local cooperative to offer crypto‑backed micro‑loans. Borrowers pay a modest 2 % interest rate, far lower than the 30 % that traditional micro‑finance institutions charge.
• Digital identity for refugees: In Jordan, Syrian refugees are issued digital ID tokens that are verified on a public blockchain. These IDs can be used to open bank accounts in partner institutions that have integrated crypto wallets into their onboarding processes.

These stories illustrate the “crypto‑inclusion” narrative that the article presents: decentralized finance (DeFi) can reach people who would otherwise remain outside the formal banking system.

2. Major Banks’ Divergent Strategies

While some banks have embraced crypto with enthusiasm, others remain cautious—or even resistant. The article offers an overview of the major approaches:

The article points out that many banks view crypto not only as a threat to their core banking business but also as a new revenue stream, especially in the realms of asset‑management, custody, and cross‑border payments. A key theme is regulatory readiness: banks are more likely to adopt crypto solutions that come with a clear compliance framework.

3. Regulatory Landscape & AML Challenges

The piece emphasizes that the regulatory environment remains a major obstacle. “The global regulatory approach to crypto is a patchwork of rules that differ from country to country,” the article writes. It cites several regulatory milestones that have shaped the industry:

• EU’s MiCA (Markets in Crypto‑Assets) Regulation: Set to go into force next year, MiCA will establish a harmonised framework for crypto‑asset issuers and service providers, including a requirement for risk‑based AML/KYC checks.
• U.S. SEC’s stance on “Security” vs. “Commodity”: The SEC has been slow to classify many tokens, leaving a grey zone that complicates banks’ due‑diligence processes.
• Central Bank Digital Currencies (CBDCs): The launch of digital yuan and the pilot of the U.S. digital dollar in certain states could redefine the legal tender status of crypto.

The article also cites an interview with KPMG’s Chief Risk Officer who stresses the importance of real‑time transaction monitoring for crypto flows, especially when dealing with high‑frequency DeFi protocols. The bank sector is adopting AI‑driven AML tools that can detect suspicious patterns across multiple blockchains.

4. Emerging Sectors & Innovation

Crypto is not only a payment tool but also a catalyst for innovation across several banking sectors. The article highlights:

1. Trade Finance: Digital asset-backed letters of credit can be automated via smart contracts, cutting processing times from days to minutes.
2. Insurance: Parametric insurance for crop losses uses oracles that feed real‑time weather data into blockchain contracts, automatically triggering payouts.
3. Wealth Management: Institutional investors increasingly allocate a portion of their portfolios to crypto funds. Banks are creating dedicated Digital Asset Investment Platforms to meet demand.
4. RegTech: A new wave of blockchain‑based regulatory reporting tools are emerging, allowing banks to generate compliance reports directly from on‑chain data.

The article underscores that these sectors will be the next battleground where banks and crypto firms either cooperate or compete. For instance, Goldman Sachs is exploring a joint venture with the crypto exchange Coinbase to offer tokenized securities to institutional clients.

5. Looking Ahead: The Path Forward

In its conclusion, the article suggests that the future will be defined by collaboration, transparency, and robust regulation. Banks that partner with crypto firms on a transparent basis and commit to AML best practices stand the best chance of capturing new markets without compromising their core risk profile.

The author also calls on regulators to create a single point of contact for crypto‑related inquiries, mirroring how banks currently report to a Central Bank for fiat‑based operations. This would streamline due‑diligence, reduce duplication of efforts, and ultimately protect consumers.

6. Further Reading & Links

To round out the narrative, the article contains links to additional Cointelegraph pieces that delve deeper into specific topics:

• “JPM Coin: Inter‑Bank Settlement in 2024” – An interview with JPMorgan’s Head of Digital Assets.
• “DeFi’s Role in Financial Inclusion” – A case study of crypto in Bangladesh.
• “Regulation vs. Innovation: The MiCA Debate” – A policy analysis from the European Commission.
• “The Rise of CBDCs: A Global Perspective” – A data‑rich report on central bank experiments.

These linked articles expand on the key points discussed above, offering data, expert opinions, and regulatory updates that further enrich the reader’s understanding of the crypto‑banking nexus.

In sum, the Cointelegraph article paints a nuanced picture: while crypto holds great promise for bridging the gap to the de‑banked, the adoption curve for major banks remains uneven and heavily dependent on regulatory clarity. The convergence of fintech, DeFi, and traditional banking is still in its early stages, but it is poised to reshape financial services in ways that could democratize access to capital, streamline cross‑border flows, and unlock new revenue streams for the industry.