Europe Takes Lead in Crypto Banking Amid US Crypto Threat

Europe has emerged as a frontrunner in crypto banking outpacing global powers in the race. Though US President Donald Trump’s crypto policies pose a significant threat to Europe’s monetary autonomy, the continent leads in terms of crypto-friendly banks.

Patrick Hansen, an executive at Circle, recently shared his thoughts on X, highlighting Europe’s strong grip on the crypto banking sector. Let’s dive into his key insights and understand Europe’s role in digital asset banks despite the US’ crypto threat.

Europe Leads in Crypto Banking, Says Patrick Hansen

In a recent X post, Patrick Hansen, the Director, EU Strategy and Policy Advisor at Circle, posited, “Europe is leading the world in terms of crypto-friendly banks.” As global powers like the United States strive to establish a strong foothold in the crypto industry through banking relationships, Europe has quietly secured its position as the undisputed leader in the sector.

According to Hansen, while the US has merely begun exploring crypto banking, Europe has already made significant strides, boasting over 50 banks that offer digital asset services. He wrote on X,

50+ European banks now offer crypto services, including trading, custody, staking, payments, stablecoins, and banking services for crypto firms.  Europe is home to the largest number of crypto-friendly banks in the world—by far.

Further, Hansen added that European banks, including top-tier G-SIBs, have laid the groundwork for crypto growth through years of infrastructure development, expertise building, and regulatory compliance, with MiCA now providing a clear path forward.

Trump’s Policies Challenge Europe’s Monetary Autonomy

A European Union official recently expressed concerns that US President Donald Trump’s crypto policies could compromise Europe’s control over its own monetary system. This statement was made during a press conference following a Eurogroup meeting on Monday. Despite this, the Europe crypto banking sector stands firm amid the growing competition.

“The US administration is favorable towards cryptocurrencies and especially dollar-denominated stablecoins, which may raise certain concerns in Europe,” stated European Stability Mechanism’s Managing Director Pierre Gramegna at the conference. Gramegna warned that US support for USD stablecoins may enable tech giants to develop ubiquitous payment solutions, threatening Europe’s monetary independence and financial stability.

This comes following EU crypto exchange KuCoin’s application for a Markets in Crypto-Assets Regulation (MiCAR) license in Austria.

Europe Crypto Banking Ahead of OCC’s Custody Rule

In a recent development, the Office of the Comptroller of the Currency (OCC) allowed US banks to custody cryptocurrencies and engage in stablecoin activities. This development has generated excitement within the community, fueling hopes for expanded banking services and greater mainstream adoption.

Reflecting on this development, Hansen stated, “While the U.S. OCC just issued guidance allowing banks to engage in digital asset services such as custody or stablecoin services, European banks are already years ahead.” He added that European banks are poised to capitalize on their first-mover advantage, a rare instance of the region leading the pack.