A crypto bank has been waiting a very long time for a stamp of approval from the Kansas City Fed — so long in fact, that the nation's oldest traditional bank caught up on crypto in that time.
Why it matters: It's the latest chapter in the old story about the frictions that surface between emerging players and incumbents in the race to embrace new technology.
The new technology in this case is bitcoin and ether, and the players involved are banks who want to hold those assets — keys and wallets included.
The big picture: Crypto wants to upend the traditional banking system, but it can't do that without scaling.
And it can't scale (attract big, well-heeled investors) without integrating into existing financial payments systems. So while crypto banks are on ice, banking incumbents are moving in.
In effect, this is the germination stage that will determine if crypto banks will emerge as meaningful players in the next cycle, or die on the vine in favor of the major banks that want in.
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