Which Banks Are Moving Into Crypto

Current Operational Status:

BNY MELLON CRYPTO CAPABILITIES (NOVEMBER 2025)

CUSTODY:
├── Bitcoin: Yes (operational)
├── Ethereum: Yes (operational)
├── XRP: Not confirmed publicly
├── RLUSD: Yes (announced partnership)
└── Other assets: Expanding

CLIENT ACCESS:
├── Institutional only
├── Qualified institutional buyers
├── Asset managers, funds, pensions
└── Not retail

INFRASTRUCTURE:
├── Sub-custody via Fireblocks
├── Integrated with traditional custody platform
├── Single statement, multiple asset types
└── Institutional-grade security

SERVICES:
├── Custody (holding)
├── Safekeeping
├── Reporting
└── Execution: Limited/evolving

XRP Relevance:
BNY Mellon's Ripple partnership positions it for XRP-related services. RLUSD custody is confirmed. XRP custody expansion would be logical next step but not confirmed.

---

Crypto Reality:
Despite Dimon's Bitcoin skepticism, JPMorgan has significant blockchain activity:

JPMORGAN BLOCKCHAIN/CRYPTO ACTIVITIES

ONYX (Blockchain Unit):
├── Onyx by J.P. Morgan: Enterprise blockchain platform
├── JPM Coin: Internal settlement token (since 2019)
├── Tokenized collateral: Repo market applications
└── Blockchain-based payments

CLIENT SERVICES:
├── Does NOT offer crypto custody for clients
├── Does NOT offer crypto trading for clients
├── Does facilitate some institutional crypto access
└── Cautious public posture despite private activity

PARTNERSHIPS:
├── Various blockchain technology partnerships
├── Enterprise focus, not retail crypto
└── Internal use cases prioritized
```

Assessment:
JPMorgan is blockchain-active but crypto-cautious. They use blockchain internally (JPM Coin) but haven't launched client-facing crypto custody or trading. Conservative approach despite technical capability.

---

Current Status:

US BANCORP CRYPTO SERVICES (NOVEMBER 2025)

CUSTODY:
├── Bitcoin: Yes (resumed)
├── Ethereum: Yes (resumed)
├── Sub-custody: NYDIG partnership
└── Client focus: Institutional

SIGNIFICANCE:
├── First major regional to resume post-2025
├── Signal of regional bank confidence
├── Model for other regional banks
└── Validates regulatory environment change

---

Significance:
Anchorage demonstrates that crypto-native institutions can obtain federal banking charters. Model for Ripple's bank charter application.

---

---

Major Banks Offering XRP Custody:
As of November 2025, no major US bank has publicly confirmed XRP custody services.

---

---

Bank crypto adoption is real but measured. BNY Mellon leads with operational services and the Ripple/RLUSD partnership. US Bancorp's resumption signals regional bank confidence. However, no major bank has confirmed XRP custody. The pattern—Bitcoin first, then Ethereum, then others—suggests XRP custody will follow rather than lead. Ripple's BNY Mellon relationship creates a pathway, but expansion timeline depends on client demand, Ripple business development, and continued regulatory stability.

---

Assignment: Create a scorecard assessing bank crypto adoption status and XRP relevance for five major banks.

Requirements:

Part 1: Scorecard Template (One Page)

• Crypto custody operational? (Y/N/In Development)
• Assets covered
• Client types served
• Sub-custodian used
• Ripple/XRP relationship
• Recent announcements
• Assessment (Leader/Active/Watching)

Apply to: BNY Mellon, State Street, JPMorgan, US Bancorp, and one bank of your choice.

Part 2: Detailed Analysis - BNY Mellon (300-400 words)

• Current capabilities
• RLUSD partnership specifics
• XRP custody prospects
• Competitive position

Part 3: Pattern Analysis (200-300 words)

• What patterns emerge across banks?
• What predicts crypto adoption speed?
• Where does XRP fit in expansion priorities?

Part 4: Investment Implications (150-200 words)

• How should bank adoption status affect XRP investment thesis?

• What catalysts would change the picture?

• What monitoring should investors prioritize?

• Accuracy of scorecard data (30%)

• Quality of BNY Mellon analysis (25%)

• Pattern recognition (25%)

• Investment reasoning (20%)

Time investment: 2-3 hours
Value: Develops ability to assess institutional adoption status systematically

---

1. Bank Leadership (Tests Current Knowledge):

Which major US bank has the most advanced operational crypto custody services as of November 2025?

A) JPMorgan Chase
B) Bank of America
C) BNY Mellon
D) Wells Fargo

Correct Answer: C

Explanation: BNY Mellon launched crypto custody in October 2022, has operational Bitcoin and Ethereum custody, uses Fireblocks sub-custody, and announced the RLUSD partnership with Ripple in July 2025. JPMorgan has blockchain activity (Onyx, JPM Coin) but not client crypto custody (A is wrong). Bank of America and Wells Fargo have limited operational crypto services (B and D are wrong).

---

2. Implementation Pattern (Tests Understanding):

What is the dominant implementation model for bank crypto custody?

A) Banks build proprietary custody infrastructure
B) Banks partner with crypto-native sub-custodians (Fireblocks, NYDIG, etc.) while providing the client relationship and regulatory wrapper
C) Banks outsource entirely to crypto exchanges
D) Banks don't offer crypto custody

Correct Answer: B

Explanation: The sub-custody model dominates: banks provide client relationship, regulatory credibility, and balance sheet strength while crypto-native firms (Fireblocks, NYDIG, BitGo) provide technology and operations. This accelerates deployment without requiring banks to build proprietary infrastructure. Full proprietary build is rare (A is wrong). Banks don't outsource to exchanges (C is wrong). Multiple banks do offer custody (D is wrong).

---

3. Asset Priority (Tests Pattern Recognition):

In what order do banks typically add crypto assets to their custody services?

A) Stablecoins first, then major cryptos
B) XRP first due to Ripple partnerships, then Bitcoin
C) Bitcoin first, then Ethereum, then other assets
D) All assets simultaneously

Correct Answer: C

Explanation: Banks consistently prioritize Bitcoin (largest, most established) first, then Ethereum (second largest), then expand to other assets over time. This reflects client demand patterns, regulatory clarity (Bitcoin/Ethereum have longest history), and operational pragmatism. Stablecoins may be added early but not before BTC (A is wrong). XRP has not been prioritized first (B is wrong). Sequential rollout is standard, not simultaneous (D is wrong).

---

4. XRP Custody Status (Tests Specific Knowledge):

What is the current status of XRP custody at major US banks?

A) Multiple major banks offer XRP custody
B) No major US bank has publicly confirmed XRP custody services, though BNY Mellon's Ripple partnership creates a pathway
C) XRP custody is prohibited by regulators
D) All banks that offer Bitcoin custody also offer XRP

Correct Answer: B

Explanation: As of November 2025, no major US bank has publicly confirmed XRP custody. However, BNY Mellon's RLUSD partnership with Ripple creates a logical pathway to XRP custody expansion. Regulators have not prohibited XRP custody (C is wrong). XRP is not automatically included with Bitcoin (D is wrong). Multiple major banks don't yet offer XRP (A is wrong).

---

5. Adoption Assessment (Tests Analysis):

What factor most strongly predicts whether a bank will move quickly into crypto custody?

A) Bank size (larger banks move faster)
B) Geographic location (East Coast banks lead)
C) Institutional client demand combined with strategic priority from leadership
D) Number of retail customers

Correct Answer: C

Explanation: Bank crypto adoption is driven by institutional client demand (clients want unified custody) combined with strategic leadership commitment (willingness to invest in capabilities). Size doesn't predict speed—regional US Bancorp moved while larger banks waited (A is wrong). Geography doesn't determine adoption (B is wrong). Retail customer base is less relevant since services are institutional-only (D is wrong).

---

For Next Lesson:
Lesson 14 will examine stablecoin and tokenized deposit competition—how RLUSD competes with bank-issued stablecoins, JPM Coin, and the emerging tokenized deposit market. Understanding this competitive landscape is essential for evaluating RLUSD's positioning.

---

End of Lesson 13

Total words: ~5,200
Estimated completion time: 50 minutes reading + 2-3 hours for deliverable