Not too long ago, cryptocurrencies were somewhat obscure. But for Gen Z and other young investors, crypto is becoming an integrated part of their financial lives, used for everything from paying rent to securing a mortgage.
There’s a “commingling of what might be investing, saving, and even social activity,” says Rebecca Carvatt, digital assets consulting co-leader for the professional services firm EY (formerly Ernst & Young).
Because of that, many young users are looking for mobile-based platforms that deliver educational information on cryptocoins and performance, Carvatt says. They’re also using platforms that integrate crypto alongside more traditional financial products like ETFs. It’s “quite important to this cohort,” to have both crypto and equities in the same platform, Carvatt says.
Companies in both the crypto and traditional financial services spaces are moving quickly to meet that demand.
Young investors want to bank in one place
Young people who are considering investing in crypto tell Business Insider that increased regulation — including the ability to buy and trade crypto with established financial companies — could allay some of their concerns around crypto, especially about security and legitimacy.
“Banks offer safety,” says Ashleigh Ewald, 23. “People have different opinions about that, but I do think that crypto would be safer if people could use crypto and have it be part of their bank.”
Ewald, who is getting her master’s in public policy at Georgia Tech, invests $500 per month in an ETF. She closely follows crypto, getting her information from a variety of sources including YouTube and The Wall Street Journal.
She’s considered buying crypto because the returns are hard to ignore, she says. However, she feels, “there is no real safety net when it comes to crypto and the transparency is honestly not there.”
She’s also hesitant because crypto is taxed as property, and doesn’t have the tax advantages of other ETFs, she says. At this point, she wouldn’t feel comfortable investing more than $200 in crypto — and currently she doesn’t hold any.
Max Lancaster, a 34-year-old from Arizona, thinks crypto is here to stay, and has even downloaded a popular crypto-trading platform. And yet, he hasn’t taken the plunge into ownership. One reason is the volatility, but he’s also dissuaded by the prevalence of memecoins, highly volatile currencies that are inspired by internet trends.
“The prevalence of memecoins, it kind of makes me take the investment less seriously,” he says.
Lancaster says that if he’s going to invest in crypto, he’d like to use the platforms he’s always used for money management: big-name financial companies and brokerages.
Financial institutions are offering crypto for the first time
Increasingly, trading crypto as part of your banking may be possible. In January, Morgan Stanley announced its intention to offer two crypto-backed ETFs, Charles Schwab just launched a crypto ETF, and SoFi became the first nationally chartered bank to offer crypto trading in 2025.
In addition to big-name financial firms getting into crypto, Carvatt says there’s a larger trend to integrate crypto and other financial products in the same platform. This merging reflects the view among many young investors that crypto is part of a well-diversified investment strategy.
“They’re viewing it as a key component of their portfolio,” Cravat says, “not just a small portion of allocation.”
As crypto becomes part of Gen Z’s portfolio, there’s likely to be a move toward more crypto lending, Carvatt says.
For Gen Z, securing a loan on their phones feels natural, she adds. Fintech companies want to meet customers where they are, by “offering experiences that are much more intuitive, mobile-first, and supported by technology,” Carvatt says, “rather than forms, papers, and in-person.”
Securing a loan right in an app, rather than going to a bank and filling out traditional paperwork, is quicker and more natural for Gen Z, she continues. Carvatt herself has applied for a crypto-backed personal loan, and had the option to add the money in her traditional bank account within “a couple minutes.”
“That is a magical experience,” she says.