The OCC (US Office of the Comptroller of Currency) recently released an update allowing US banks to act as custodians for crypto assets and serve as validators in PoS blockchains. But how will this shift reshape the Web3 market in terms of decentralization, staking yields, and competition?
A major step for institutional crypto adoption, the update removes previous restrictions, allowing banks to directly hold and manage crypto assets. While some banks already offer custody services through third parties, this change enables them to act as custodians themselves, work with stablecoins, and provide fiat backing.
“This will expand the market and strengthen the industry’s infrastructure,” explains Bohdan Opryshko, co-founder and COO of Everstake, a leading staking and blockchain solutions provider. “Institutional investors, who may have been hesitant due to security concerns, will be more inclined to enter the market through regulated banking services.”
Opryshko says banks will be able to offer staking services by creating their own validators, allowing clients to stake assets securely while earning rewards. This could shift token holders’ perspectives, making banks like Bank of America appear as more trustworthy staking providers than even the largest crypto exchanges or non-custodial solutions. As a result, the competition between traditional banks and crypto-native staking platforms will intensify, building greater trust in the space.
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Consumer protection & regulatory oversight
With banks involved, regulatory scrutiny will increase, reducing the likelihood of bad actors in the staking ecosystem. Regulators will have greater control to prevent fraud and unfair practices, enhancing consumer protection and reinforcing industry integrity. But there is a negative element to this otherwise rosy picture.
If banks become dominant validators, power could become concentrated, reducing the decentralized nature of PoS networks. In extreme cases, a bank running multiple nodes on a blockchain could control most of the validator set, increasing the risk of slashing events and user losses.
As banks stake large amounts of Ethereum, Solana, and other PoS assets, the total staked supply will rise, leading to lower APRs for everyone. While this is a natural mechanism within PoS networks, it could reduce staking rewards overall.
Banks will be slow to adopt innovations
Despite the policy update, widespread adoption by banks won’t happen overnight. Large financial institutions are typically slow to adopt new innovations, and setting up staking services requires navigating complex compliance approvals. A full rollout is expected to take at least 2–3 years before banks integrate these services at scale.
“Banks are not inherently crypto-native, and many may struggle with the technical aspects of running validators and managing staking infrastructure,” said Opryshko. “It remains unclear whether they will partner with experienced white-label providers or attempt to build in-house solutions—where failures could be costly.”
If regulators classify staking as a financial service, banks and independent providers alike may be required to obtain licenses, and tax compliance could become more stringent. This could introduce additional operational challenges and costs. It won’t be all plain sailing, I’m afraid.
