Cryptobanks

Crypto banks are decentralized platforms that combine the features of exchanges, exchangers and p2p lending services. The main task is to create a service and payment infrastructure for connecting the crypto community with the fiat world. At the same time, there is no talk of an analogue of traditional banks in the world of cryptocurrencies: neither in terms of functionality, nor in terms of principles of operation.

Cryptocurrencies

Main article: Cryptocurrencies

Cryptocurrency exchanges

Main article: Cryptocurrency exchanges

Chronicle

2024: Global cryptocurrency banking services market growth by 64% to $5.29 billion

In 2024, costs in the global cryptocurrency banking market reached $5.29 billion. For comparison, a year earlier, the volume of this sector was estimated at $3.23 billion. Thus, an increase of about 64% was recorded. This is stated in a study by Market Research Future, the results of which TAdviser got acquainted with at the end of February 2025.

The main driver of the industry in question, analysts call the growing adoption of digital currencies around the world. Financial institutions, fintech companies and technology corporations are integrating cryptocurrency services into their infrastructures to improve customer engagement. Cryptocurrencies provide benefits such as increased transaction efficiency, flexibility and lower fees. Digital currencies are increasingly being used in a variety of sectors, including retail, tourism and e-commerce. Many countries are implementing projects to introduce digital currencies of central banks. In addition, there has been an active expansion of the accompanying ecosystem, including an increase in the number of cryptocurrency exchanges and platforms that make it easier to buy, sell and store digital assets.

Achievements in the blockchain sector have a significant impact on the global market. The innovations being introduced increase the security, speed and transparency of cryptocurrency transactions, making them more attractive to both ordinary consumers and enterprises. As blockchain technology evolves, new protocols and frameworks are being developed to enable more efficient operations and improve scalability. These advances make it easier to seamlessly integrate cryptocurrency banking services into existing financial systems. The expansion of the industry is also facilitated by developments in smart contracts and decentralized finance (DeFi).

Analysts note that governments around the world are aware of the potential benefits of cryptocurrencies and blockchain technology, which leads to improved regulation in the relevant area. This reduces the uncertainty and risks associated with cryptocurrency transactions. As a result, the use of digital assets is growing.

The authors of the study distinguish several main market segments: cryptocurrency wallets, crypto lending, payment processing, investment services, etc. In 2023, revenue in the first of these areas amounted to about $1 billion. Crypto lending provided a contribution of $0.8 billion, payment processing - $0.5 billion. Investment services accounted for $0.33 billion. Other cryptocurrency banking services brought in $0.6 billion. Significant players in the global market are:

• Nexo;
• Paxos;
• Gemini;
• BitPay;
• Kraken;
• Sfox;
• BlockFi;
• Bitstamp;
• Revolut;
• Wirex;
• Bittrex;
• Binance;
• Celsius Network;
• Coinbase.

From a geographical point of view, in 2023, the largest revenue fell on North America - about $1.5 billion: the dominance of the region is explained by the high level of development of the IT sector in general and the cryptocurrency sector in particular. In second place is Europe with an estimate of $0.9 billion, followed by the Asia-Pacific region with 0.7 billion South America brought in $0.07 billion, and - Middle East Africa $0.06 billion.

Market Research Future analysts believe that in the future, the CAGR in the market under consideration will be 28.12%. As a result, by 2034, costs on a global scale could increase to $63.15 billion.^[1]

2023: Global Cryptocurrency ATM Market Valued at $181 Million

The volume of the global cryptocurrency ATM market in 2023 reached approximately $181 million. At the same time, the main part of the costs falls on the so-called unidirectional machines. Relevant data are provided in the Fact.MR study, the results of which were released on October 19, 2023.

Unidirectional, or one-way, cryptocurrency ATMs, which are most common, only allow the purchase of cryptocurrency assets. In turn, bidirectional machines also make it possible to sell cryptocurrencies in exchange for cash. According to Fact.MR estimates, in 2022, unidirectional crypto bankers accounted for more than 68% of the total market volume in monetary terms.

The volume of the global cryptocurrency ATM market in 2023 reached approximately $181 million

From a geographical point of view, the United States remains the leader in terms of introducing cryptocurrency ATMs with a share of about 45% in 2022. The hardware segment accounted for about 75% of all costs in 2022, while bitcoin provided 30% of all revenue.

Cryptocurrency ATMs serve as a vital link between existing banking systems and the cryptocurrency world. These machines make it easier for users to enter the cryptocurrency industry and work with digital assets, the study says.

In the future, Fact.MR analysts believe that the global cryptocurrency ATM market will continue to develop rapidly. The Compound Percentage CAGR until 2033 is expected to be at 57%. As a result, by the end of the period under review, the volume of the industry will reach $16.85 billion. Analysts believe crypto bankcomats will remain one of the key elements of the bitcoin ecosystem as the digital asset landscape evolves. At the same time, operators of such installations are interested in supporting other cryptocurrencies.^[2]

2022: The largest US crypto banks borrowed more than $13 billion from federal banks

On January 21, 2023, it became known that the US Federal System of Housing Lending Banks (FHLB) provided billions of dollars to the two largest cryptocurrency banks in the country.

According to The Wall Street Journal, cryptocurrency banks Silvergate Capital and Signature Bank were forced to borrow $13 billion from federal banks. It is known that in the fourth quarter of 2022, the FHLB organization provided a loan to the commercial bank Signature Bank for almost $10 billion. This has become one of the largest credit operations of the bank in recent years, the newspaper notes in a publication dated January 21, 2023. In 2018, Signature received approval from the New York City Department of Financial Services for its blockchain-based digital platform. The bank is forced to borrow such a large amount, since the volume of deposits fell from $103 billion to $89 billion. This is the first time in the history of the company when the size of customer deposits decreased at the end of the year.

US crypto bank debt amounted to more than $13 billion

The second bank to request funds from FHLB was Silvergate Capital: it received at least $3.6 billion. In the fourth quarter of 2022, Silvergate faced a significant outflow of deposits and took measures to improve its financial situation. It is estimated that the net loss attributable to the owners of ordinary shares of the bank during this period amounted to $1 billion. According to the Silvergate report, deposits of digital asset customers in the fourth quarter of 2022 amounted to $7.3 billion, which is significantly lower than the previous quarter, when the figure reached $12 billion.

The industry was heavily impacted by the collapse of the FTX group, it said. Experts note that the cryptocurrency industry is intertwined with the banking system. At the same time, the level of fraud, money laundering and illegal financial transactions is increasing in this area.^[3]

Notes