According to Cointelegraph, Lead Bank co-founder and chief legal and risk officer Erica Khalili said at the Ripple Swell conference in Miami that banks entering the crypto space requires significant investment and a specific relationship with regulators.

Khalili stressed that banks need to develop strategies to meet regulatory requirements. The increase in new banks makes regulatory clarity and cooperation among banking regulators crucial.

Lead Bank has adopted a three-pronged approach to managing regulatory relationships: education, demonstrating the practical applications of digital assets in capital markets, and patience. Khalili explained that regulators can achieve efficient monitoring through digital technology.

Khalili also noted that banks may try digital asset banking out of curiosity or for cost reduction purposes, but success requires in-depth knowledge and investment in products, technology and people.

Khalili and three other co-founders acquired Kansas City, Missouri-based Lead Bank in August 2022 with the goal of providing banking services to the crypto space.