Wall Street Banks Compete for Crypto IPO Deals as Trump Aims to Make the U.S. a Crypto Hub.
Major banks are increasingly seeking partnerships with crypto firms as opportunities for initial public offerings (IPOs) grow, according to a Feb. 10 report by Bloomberg, citing sources familiar with the matter.
Morgan Stanley is now actively pursuing crypto clients, while Bank of America is exploring more deals, and Royal Bank of Canada is looking to expand its crypto portfolio.
The renewed interest in the sector comes as crypto exchanges like Gemini and Bullish consider going public, with firms such as Kraken and stablecoin issuer Circle also having previously explored public listings.
Banks are eager to seize these IPO opportunities, especially as Donald Trump’s administration signals a shift toward pro-crypto policies. During the Bitcoin 2024 Conference, Trump vowed that if re-elected, he would transform the United States into the “crypto capital of the planet.”
With regulatory easing on the horizon, Wall Street firms are positioning themselves to capitalize on the next wave of crypto public offerings.
Crypto exchange Bullish once aimed to go public through a $9 billion SPAC deal with Far Peak Acquisition, but the plan was ultimately scrapped in 2022. Former CEO Brendan Blumer cited unexpected delays in the process as the primary reason for calling off the deal.
Meanwhile, Bank of America is reportedly gearing up for more crypto-related deals, though specific details remain unclear.
In the fintech sector, Swedish giant Klarna is making a strategic move into crypto as it prepares for its April IPO. Klarna’s CEO, Sebastian Siemiatkowski, recently announced on X that the company plans to integrate crypto into its platform, signaling a major shift in its financial services.
With a potential $15 billion valuation, Klarna’s IPO could be one of the largest in 2024, further solidifying crypto’s growing influence in mainstream financial markets.
