Recently, news about collaborations between crypto projects and traditional banks has been everywhere, but a closer look reveals that things are not as simple as they seem.

Some projects are indeed hinting that by 2026 they will partner with mainstream financial institutions, but so far, there are no concrete examples of such collaborations actually materializing. Behind this, the entire market is betting on one thing—whether regulators will loosen their grip.

From on-chain data, last week’s DeFi lock-up volume experienced a 12% short-term fluctuation. Interestingly, this fluctuation coincided with rumors of bank partnerships. Funds are betting on a "breakthrough signal." But here’s the problem: a case review by the US Office of the Comptroller of the Currency last year showed that the entire compliance process for crypto banks typically takes 18 to 24 months. This time cost alone is enough to cast doubt on many project promises.

Thinking even further, all current partnership announcements are made by the projects themselves, with no official confirmation from financial institutions. What happened to the wave of stablecoin-bank collaborations in 2021? Everyone saw the outcome. Regulatory temperament is notoriously unpredictable, and projects that overhype bank concepts may ultimately face narrative collapse.

So here’s the core issue: in such a regulatory environment, will genuine cooperation between traditional financial institutions and the crypto sector accelerate or be delayed? This might be the key question to watch in the coming future.