Startups definitely have an uphill battle, but they still have the advantage of agility. Unlike big banks, they can quickly implement new tech, experiment with different fee structures, and respond to community needs. That’s why some of the best platforms today started as small disruptors.

From what I’ve observed, the competition is getting fierce. It’s not just about offering crypto wallets and transactions anymore—users expect features like staking, DeFi integrations, and even fiat on/off ramps with low fees. Startups can still carve out a niche, but they need either a unique feature or a strong regulatory strategy.

For example, one way new entrants can compete is by leveraging a binary options white label solution. This allows them to enter the market faster with a pre-built, customizable platform rather than developing everything from scratch. Here’s a good breakdown of how this works: binary options white label. Essentially, this approach lets companies focus more on user acquisition and branding instead of backend development, which is a massive advantage in a rapidly evolving industry.

Another key factor is partnerships. Many smaller crypto banks are forming alliances with larger fintech firms to gain credibility and access to better liquidity pools. But you’re right—traditional banks stepping in makes things even harder. They have the trust factor, which a lot of new crypto platforms struggle with. However, their services often lack flexibility, and that’s where startups still have a window of opportunity.