TradFi's Great Transformation! JPMorgan Embraces Cryptocurrency, A Complete Analysis of Friendly Banks by 2026

TradFi made a historic turn in 2026, with JPMorgan allowing unlimited transfers to Coinbase, Bank of America establishing a digital asset team, and Wells Fargo launching Bitcoin mortgages. SAB 121 Revocation vs. OCC Letter 1188 Clearing Custody Barriers. This article selects the 8 best crypto-friendly banks, including Ally Bank, Mercury, Revolut, and more.

TradFi regulatory breakthrough clears crypto custody barriers

The landscape between traditional finance and cryptocurrencies has changed dramatically in 2026. Major financial institutions are now embracing digital assets, primarily driven by regulatory clarity, customer demand, and competitive pressures. The most pivotal regulatory breakthrough was the revocation of SAB 121 with the issuance of OCC Letter 1188.

The revocation of SAB 121 occurred in January 2025, when the SEC revoked Employee Accounting Bulletin No. 121. This announcement required banks to record cryptocurrencies in custody as liabilities on their balance sheets, which significantly increased the cost and risk of banks providing crypto custody services. After revocation, banks can handle cryptocurrencies like traditional custodial operations, removing the most significant regulatory hurdles.

OCC Letter 1188 was issued in December 2025, clarifying that national banks do not require special permission to hold digital assets, provide custody services, and facilitate cryptocurrency transactions. The letter provides a clear legal basis for banks, allowing traditional banks to boldly enter the crypto space without fear of regulatory retaliation.

The GENIUS Act, passed in July 2025, requires the Federal Deposit Insurance Corporation (FDIC) to publish guidelines for cryptocurrency custody by mid-2026. Banks are preparing for the introduction of these rules. The stablecoin framework is expected to be launched in the second quarter of 2026, and bipartisan stablecoin legislation (Cryptocurrency Market Structure Act) may lead to banks issuing stablecoins and promote the deep integration of cryptocurrencies.

Following this trend, it is expected that by the end of 2026, Citigroup, PNC Bank, and Bank of America will announce the launch of cryptocurrency services. This collective shift in TradFi marks a defining moment in the cryptocurrency’s transition from the fringes to the mainstream.

JPMorgan Chase & Co. and Bank of America have changed their attitudes 180 degrees

Specific examples illustrate the depth of TradFi’s transformation. JPMorgan Chase now allows customers to add unlimited funds to their Coinbase accounts via ACH transfers, a polar opposite of its previous blocking stance. You know, just in 2021, JPMorgan Chase will freeze transfers suspected of being related to cryptocurrency exchanges, asking customers to provide detailed explanations. Today, not only is transfers open, but its blockchain division, Onyx, has expanded the use of JPM Coin beyond institutional clients.

Bank of America’s transformation is equally striking. After years of caution, Bank of America established a digital asset research team in late 2025, released a bullish analysis of Bitcoin ETFs, and recommended including cryptocurrency investments in diversified portfolios. This openly bullish stance was unthinkable a few years ago, when Bank of America’s research report was warning of “speculative risks” in Bitcoin.

Wells Fargo has launched Bitcoin mortgages to institutional and high-net-worth clients and has invested in Bitcoin ETFs. The launch of Bitcoin mortgages is significant because it signifies Wells Fargo’s willingness to accept Bitcoin as legal collateral, which is a significant breakthrough in risk management and accounting.

The pivot of these TradFi giants is not just a business decision but a recognition of the entire industry ecosystem. When banks managing trillions of dollars in assets began offering crypto services, it signaled to the entire financial system that cryptocurrencies were no longer fringe experiments, but a legitimate asset class that had to be included in the scope of services.

8 Best Crypto-Friendly Bank Recommendations

First choice for the US market

Ally Bank is the best choice for individual crypto users in the United States. Maintaining a crypto-friendly stance since 2017, offering Coinbase integration to treat crypto transfers as legitimate financial activities. Have FDIC $250,000 insurance for $0 per month, but wire transfers incur a $20 processing fee. It is suitable for long-term holders to use with hardware wallets.

Designed for crypto startups and Web3 companies, Mercury serves thousands of businesses, including Phantom and Rarible. The key feature is to display the business name on the wire transfer slip, providing free wire transfers, but it does not support MSB or exchanges, and applications need to be reviewed.

USAA is the best choice for military families, the first Fortune 500 company to integrate Coinbase in 2015, and has maintained a positive attitude towards cryptocurrencies for nine years. However, only active/retired military personnel and their immediate family members can apply, with $20 for domestic wire transfers and $45 for international wire transfers.

Quontic Bank is the best choice for Bitcoin rewards, the first FDIC-covered bank to offer 1.5% Bitcoin cashback, partnering with NYDIG to automatically accumulate Bitcoin. However, it is not possible to transfer Bitcoin to an external wallet and must hold a NYDIG account or exchange it for cash.

The first choice for international markets

Revolut is the best choice for UK and EU users, with 5,250k customers and a full UK banking license, in-app trading of over 90 cryptocurrencies and staking capabilities. However, the US encryption features are limited and not FDIC insured, and premium subscriptions can enjoy the best features.

Wirex caters to global crypto consumption, supporting over 100 cryptocurrencies in over 130 countries and offering up to 8% cashback. However, customer service reviews are mixed, with rewards only paid in WXT tokens and a trading fee of 1.5%.

Cash App is the best entry point for Bitcoin newcomers, with over 5,000 users able to buy Bitcoin for as little as $1 through the Lightning Network. But only Bitcoin is accepted, with a transaction fee of 0.5-3% and a daily purchase limit of $10,000.

Customers Bank specializes in institutional services, processing $1.5 trillion in digital asset transactions, partnering with Coinbase, Circle, Kraken. However, it is mainly for institutional customers, with customized pricing and not suitable for everyday users.

The core difference between crypto neobanks and TradFi

Crypto neobanks are digital platforms that combine traditional banking with built-in encryption capabilities, often all in one application. Unlike TradFi, which only allows fiat transfers, neobanks allow you to buy, sell, hold, and use cryptocurrencies directly on their platform, while also offering regular checking and savings accounts.

Most neobanks operate through bank-as-a-service partnerships (such as Cash App with Wells Fargo), offering FDIC-insured fiat currency accounts and proprietary crypto infrastructure on top of that. The key difference is the user experience: TradFi requires transferring fiat currency to an exchange before purchasing cryptocurrency, while Neobank can do everything within the same app.

However, the collapse of Juno in September 2025 highlighted the risks faced by platforms lacking direct insurance. Juno terminated all services due to Synapse’s bankruptcy and faced difficulties in withdrawing user funds due to not being directly FDIC-insured. This case reminds us that TradFi Bank, while fewer functions, has better regulatory protections.

Avoid minefields and risk management strategies

Banks to avoid in 2026 include the collapsed Juno (closed in September 2025), Silvergate Bank (liquidated in March 2023), and Signature Bank (seized in March 2023). The UK market is heavily restricted, with Chase UK banning cryptocurrency payments altogether, Barclays UK banning cryptocurrency card transactions in June 2025, and most UK commercial banks often blocking transfers.

The golden rule of risk management is to diversify your operations and document everything. Never rely on a single bank, it’s best to open an account with two or three financial institutions. Always keep detailed records of all transactions, especially large transfers, as proof of legitimate transactions. Self-custody is the best strategy, with banks only for fiat transactions and cryptocurrencies in your own wallet. For cryptocurrencies over $10,000, use a hardware wallet.