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Major U.S. Bank Shocks Wall Street With Sudden Pivot Into Crypto Finance

As an analyst, I’ve been tracking Monet Bank’s shift – they’ve really reinvented themselves to focus on cryptocurrency. They’re now part of a small but quickly expanding number of US banks that are officially regulated and trying to provide services to the digital asset world.

Key Takeaways

  • Monet Bank has fully rebranded into a crypto-focused institution with nearly $6B in assets.
  • The bank positions itself as a digital-asset infrastructure provider under billionaire owner Andy Beal.
  • It joins a new wave of US banks – like Erebor and N3XT – building regulated services for the crypto industry.

A Radical Transformation Years in the Making

Monet Bank did not start out as a crypto player.

Founded in 1988 as Beal Savings Bank, well before the rise of cryptocurrencies, the company spent years serving its local community. Now, after changing its name twice – first to XD Bank and then to Monet Bank – it’s making a big move into the world of digital assets.

Andy Beal, a billionaire investor and supporter of Donald Trump, is leading his bank, Monet, into a niche area most US banks haven’t entered. With around $6 billion in assets and $1 billion in capital, Monet has the financial strength to offer these specialized services.

Positioning Itself as a Digital-Asset Infrastructure Bank

Instead of just offering accounts for cryptocurrency users, Monet is aiming for a much bigger role in the crypto world.

The organization’s stated goal is to provide the infrastructure and services businesses need to succeed in the growing world of blockchain-based finance.

The major changes seem to be finished. The bank has a new look and focus, updated official documents, and a new technical setup that indicates it’s aiming to compete directly with companies built specifically around cryptocurrency.

Monet continues to operate under the regulations of the FDIC and still has six brick-and-mortar branches, which is unusual for a company also focused on digital assets.

A New Class of Crypto Banks Is Taking Shape

Monet Bank is launching as several companies attempt to replace banks that recently failed or stopped serving customers in the crypto space.

Recent examples include:

  • Erebor Bank, a tech-centric institution backed by Peter Thiel, which received a conditional national bank charter from the OCC in October.
  • N3XT, a Wyoming-based SPDI bank founded by former Signature Bank executives, which plans to use a private blockchain to clear payments instantly.

These companies, working with Monet Bank, are creating a new type of banking that’s carefully regulated and designed for the world of cryptocurrency. It combines standard banking rules with modern features like digital transactions, tokenized loans, and services specifically for crypto businesses.

Why Monet Bank’s Entrance Matters

While many new companies are creating digital banks, Monet is different. It already has a long track record of successful operations and strong financial resources as it enters the cryptocurrency market.

This provides an advantage new companies don’t have: established relationships with regulators, existing systems, and financial resources.

As an analyst, I’m watching a really interesting trend: even smaller, regional banks are starting to explore digital asset lending. This is significant because larger financial institutions are still largely hesitant in this space, suggesting these smaller banks see a genuine opportunity for growth and innovation.

Monet Bank is now establishing itself as a mainstream, fully regulated financial institution, connecting traditional banking with the growing world of digital tokens.

This article is just for educational purposes and shouldn’t be taken as financial, investment, or trading advice. Coindoo.com doesn’t recommend any particular investment or cryptocurrency. Before making any investment decisions, be sure to do your own research and talk to a qualified financial advisor.

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2025-12-07 17:16