A New Era of Finance: When Banks Begin Entering the Crypto World

Global Regulations Are Changing, Between Integration, Risks, and New Opportunities

For years, the worlds of banking and crypto have run on two separate tracks. Banks were seen as slow, bureaucratic, and conservative, while crypto was viewed as a symbol of financial freedom and limitless innovation. However, a major transformation is underway. Regulations in Japan, the United States, and several developed countries are beginning to pave the way for banks to enter the digital asset business.

Is this the sign of “crypto normalization,” or the beginning of a new generation of financial risks?

Japan: From Prohibition to Integration

Japan’s Financial Services Agency (FSA) is considering a historic move: allowing banking groups to provide crypto trading services through their securities subsidiaries. Until now, Japanese banking laws have prohibited banks from registering as crypto asset service providers, meaning that such activities could only be carried out by securities companies or exchanges like bitFlyer and Coincheck.

However, global pressure to innovate has shifted the direction. According to reports by Nikkei and Reuters (October 21, 2025), the FSA is also easing restrictions that prevent banks from purchasing and holding crypto assets as investments. This means that major banks such as Mitsubishi UFJ (MUFG), Sumitomo Mitsui (SMFG), and Mizuho Financial Group could soon enter the crypto market not only as custodians, but also as active participants.

Even more interesting, these three major Japanese banks are developing yen-based stablecoins, intended for cross-border digital transactions. If successful, Japan would become the first developed country in Asia to successfully integrate stablecoins into its financial system.

The United States: From “Threat” to “Strategic Asset”

Meanwhile, the United States is also changing its tone toward digital assets. Federal Reserve Governor Michael Barr, in a speech in mid-October, stated that stablecoins and tokenization could improve payment efficiency and “bring new opportunities for the modern financial system.”

U.S. financial regulators such as the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) have even removed many of the barriers for banks wanting to offer crypto-related services including custodial functions and stablecoin issuance.

Several major banks, including Bank of America, have publicly stated that they are “seeking legal clarity” to launch their own stablecoin initiatives. This marks a major shift: from a previously prohibitive regulatory stance to a more “collaborative” approach with fintech innovation.

What Does This Mean?

Japan and the U.S.’s steps indicate that crypto is no longer a fringe sector it’s becoming part of national financial strategies. This integration could bring several major implications:

1. Legitimacy for Digital Assets
   With official banks getting involved, public trust in crypto will increase. Retail investors can access crypto more safely through regulated institutions rather than relying on global exchanges vulnerable to security breaches.

2. Acceleration of Asset Tokenization
   Once banks join in, projects involving the tokenization of real assets such as bonds, real estate, or commodities could grow much faster. Imagine a few years from now, investors could buy “Tokyo property tokens” or “U.S. digital bonds” directly from a bank’s platform.

3. New Opportunities for Southeast Asia
   Japan’s move could serve as a model for ASEAN countries, including Malaysia and Indonesia. If Asian banks follow Japan’s example, cross-border collaborations through locally backed stablecoins could become a reality.

Conclusion

The actions of Japan and the U.S. mark a new chapter in modern financial history. The world is shifting from the old paradigm where crypto was the “enemy of banks” toward a future where crypto becomes part of the global financial system.

However, this integration also brings new responsibilities: regulations must adapt, transparency must be strengthened, and public education must be prioritized.

If managed well, the world may soon witness the birth of a hybrid financial system one that combines the stability of traditional banking with the speed and innovation of blockchain technology.

And for Southeast Asia, this is a tremendous opportunity not just to be spectators, but to become active players in shaping the future of the global digital economy.