Cryptocurrency Banking Market Growth, Analysis, and Forecast by 2031

The cryptocurrency banking market size is expected to register a CAGR of 7.2% during 2023–2031. Adoption of advanced technologies such as blockchain, artificial intelligence (AI), and cloud computing is likely to remain a key trend in the market.

Cryptocurrency Banking Market Analysis

The cryptocurrency banking market includes growth prospects owing to the current market trends and their foreseeable impact during the forecast period. The cryptocurrency banking market is growing due to rapid adoption of cryptocurrencies, and government initiatives to support cryptocurrency adoption. Custody services provides lucrative opportunities for cryptocurrency banking market growth.

Cryptocurrency Banking Market Overview

A cryptocurrency bank is a type of financial institution that uses cryptocurrencies rather than conventional money like dollars to provide the same financial services as regular banks (like loans). To make transactions faster, safer, and more convenient, cryptocurrency banks combine the greatest features of digital banks with cryptocurrencies. Traditional banks with cryptocurrency licenses and digital asset platforms with cryptocurrency bank features are two examples of the various sorts of cryptocurrency banks.

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Cryptocurrency Banking Market: Strategic Insights

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Cryptocurrency Banking Market Drivers and Opportunities

Rapid Adoption Of Cryptocurrencies to Favor Market

The cryptocurreny industry is growing in popularity and constantly expanding. Cryptocurrencies have brought transformative changes to the global economic landscape. Cryptocurrency adoption has been significantly increasing as more and more people are turning to digital assets as a viable form of payment. For instance, according to Gitnux, there were over 13,000 cryptocurrencies in existence as of October 2021. Bitcoin is the world’s first cryptocurrency, used by ~101 million users as of Q3 of 2021. With more people embracing digital currencies like Bitcoin, Ethereum, and others, the demand for convenient ways to buy and sell these assets is increasing rapidly.

Custody Services

With numerous applications in digital asset services, Banks may decide to provide commercial banking services to companies that hold cryptocurrency assets, facilitate payment processing and settlements for digital transactions, and transition from traditional custody services (safekeeping, depositary, and settlement services) to next-generation secure digital asset custody services. Other opportunities include running cryptocurrency-based ATMs, wallets and rewards, and merchant processing services utilizing cryptocurrency assets.

Cryptocurrency Banking Market Report Segmentation Analysis

Key segments that contributed to the derivation of the cryptocurrency banking market analysis are services, cryptocurrency, and application.

• Based on services, the cryptocurrency banking market is divided into loan & credits, payments, clearance & settlement system, fundraising, securities, and trade finance.
• By cryptocurrency, the market is segmented into bitcoin, ether, dash, monero, ripple, litecoin, and others.
• By application, the market is segmented into trading, payment, and remittance.

Cryptocurrency Banking Market Share Analysis by Geography

The geographic scope of the cryptocurrency banking market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.

Cryptocurrency is growing in popularity and usage with Bitcoin and Ethereum being the most preferred among North American users. According to a survey by Coinbase, 20% of American  own crypto and 13% of Canadians currently own crypto assets or crypto funds according toa study by Ontario Securities Commission in 2022. Moreover, large banks such as JPMorgan Chase, Goldman Sachs and Bank of America have launched crypto trading desks, and wealth management firms, such as Morgan Stanley and Wells Fargo.

Cryptocurrency Banking Market Regional Insights

The regional trends and factors influencing the Cryptocurrency Banking Market throughout the forecast period have been thoroughly explained by the analysts at The Insight Partners. This section also discusses Cryptocurrency Banking Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Cryptocurrency Banking Market Report Scope

Cryptocurrency Banking Market Players Density: Understanding Its Impact on Business Dynamics

The Cryptocurrency Banking Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Cryptocurrency Banking Market News and Recent Developments

The cryptocurrency banking market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the cryptocurrency banking market are listed below:

• N26 launches new cryptocurrency trading product, N26 Crypto, for the French market. N26 customers in France will be able to invest in crypto assets directly in their N26 App with the launch of N26 Crypto in France.  (Source: N26, Press Release, March 2024)

• PostFinance, one of Switzerland’s leading financial institutions and largest retail banks, launches an innovative crypto offering in partnership with Sygnum, a global digital asset banking group, to offer digital asset services via Sygnum’s B2B banking platform. (Source: Sygnum, Press Release, February 2024)

Cryptocurrency Banking Market Report Coverage and Deliverables

The “Cryptocurrency Banking Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:

• Cryptocurrency banking market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Cryptocurrency banking market trends, as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST/Porter’s Five Forces and SWOT analysis
• Cryptocurrency banking market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the cryptocurrency banking market
• Detailed company profiles