The vision for blockchain and DLT is clear: decentralisation, frictionless global transactions, and financial systems free from traditional intermediaries. Over the past year, major institutional players have taken significant steps towards this future, embracing tokenisation and blockchain-based financial products.

• BlackRock, Franklin Templeton, and JPMorgan are integrating blockchain into their investment offerings.

• Stablecoins are gaining legitimacy, with PayPal launching its own stablecoin and USDC expanding into more banking networks.

• Fintech giants such as Stripe, Revolut, and Robinhood are increasing their crypto services.

For years, uncertainty around crypto regulation has made banks hesitant to engage with the industry. The introduction of MiCA (Markets in Crypto-Assets Regulation) in the EU is a positive step forward:

• Clear rules allow crypto businesses to operate under a unified regulatory framework across the EU.

• Stablecoin oversight ensures proper reserves, reducing systemic risks and increasing trust in regulated issuers.

• Compliance frameworks provide a pathway for institutional adoption, encouraging greater integration between traditional finance and crypto.

Globally, jurisdictions such as Hong Kong, the UK, Dubai, and Singapore are actively developing clearer regulatory frameworks. This is legitimising the industry and creating a clearer path for banking engagement.

Chokepoint 2.0: the silent barrier to banking

Despite these advancements, crypto and DLT start-ups still face a fundamental problem: access to traditional banking services. Many financial institutions remain reluctant due to legacy concerns and the residual effects of “Chokepoint 2.0”. The coordinated efforts by certain players to limit crypto firms’ access to financial services continue to have a lasting effect on the industry.

The reality: start-ups still need banks

While the long-term vision is for on-chain transactions and self-custody to replace intermediaries, start-ups still require banking for practical reasons:

• Payroll and expenses – most employees still expect salaries in fiat.

• On/off ramps for users and investors – the fiat-to-crypto bridge remains essential.

• Treasury and financial operations – stablecoins are useful, but businesses still need access to fiat banking rails.

Even in regulated jurisdictions like Gibraltar, where DLT firms operate under structured licensing frameworks, start-ups still struggle to open basic banking accounts.

Why banks hesitate and how to overcome it

The issue isn’t just risk—it’s perception. Many banks:

• Have outright bans on crypto-related businesses.

• Lack internal policies to process crypto applications effectively.

• Move too slowly, leading to stalled applications or abandoned discussions.

Even when a bank is open to discussions, compliance requirements are stringent. Start-ups need:

• Robust governance and compliance frameworks.

• Clear ownership and fund flow transparency.

• Regulatory oversight where applicable.

However, even well-structured applications can fail simply because start-ups struggle to find the right contact within a bank who understands the industry.

The power of trusted introductions - the Hassans/Line Group edge

Banks prioritise relationships. A direct application may struggle to gain traction, while an introduction from a trusted legal and corporate services provider can open doors.

At Hassans and Line Group, we have:

• Decades of experience navigating banking challenges for financial services firms.

• Longstanding relationships with banks across multiple jurisdictions.

• A proven track record of helping crypto and DLT start-ups engage with banking providers.

Finding a way forward

Crypto adoption is inevitable, and banking will eventually adapt. While no guarantees exist, a structured approach—backed by experienced advisers and strong professional networks—significantly improves the likelihood of securing banking services.

The industry is at a turning point. Regulation is becoming clearer, banks will be forced to engage, and crypto’s role in the global economy will only grow. If your start-up is looking for banking solutions, reach out to Hassans or Line Group to explore how our expertise and connections can help you move forward.