NEW YORK—Cryptocurrencies, once considered a niche investment, are becoming a routine part of financial life for Gen Z and other younger investors, who are increasingly blending digital assets with traditional banking and investing, according to a new report.
An analysis by Business Insider found that younger consumers are not only investing in crypto but also exploring its use in everyday financial activities, including rent payments and even mortgage-related transactions. Industry observers say this shift reflects a broader convergence of investing, saving and social engagement.
“There’s a commingling of what might be investing, saving, and even social activity,” Rebecca Carvatt, digital assets consulting co-leader at EY, told Business Insider.
As a result, younger users are gravitating toward mobile-first platforms that combine crypto with traditional financial products such as exchange-traded funds (ETFs), while also offering education and performance tracking tools. Carvatt said having both crypto and equities available in a single platform is “quite important” to this cohort.
Racing to Meet Demand
As credit union leaders are well aware and as Business Insider reported, financial institutions and crypto firms alike are racing to meet that demand, with established companies moving to incorporate digital assets into their offerings.
At the same time, younger investors remain cautious. Many told Business Insider that greater regulation and the ability to access crypto through traditional financial institutions could help address concerns about security and legitimacy.
“Banks offer safety,” Ashleigh Ewald, a 23-year-old graduate student, told the publication, adding that crypto might feel more secure if integrated into traditional banking systems.
Where Consumers Have Concerns
Ewald said she invests regularly in ETFs but has hesitated to purchase crypto due to concerns about transparency, taxation and the lack of a safety net. Others cited volatility and the rise of speculative “memecoins” as deterrents.
“The prevalence of memecoins…makes me take the investment less seriously,” Max Lancaster, a 34-year-old Arizona resident, told Business Insider.
Despite those concerns, major financial firms are increasingly entering the crypto space. Business Insider noted that companies including Morgan Stanley and Charles Schwab have launched or announced crypto-related investment products, while SoFi has moved into crypto trading.
Crypto is ‘Core’
Carvatt told Business Insider that many young investors now view crypto as a core component of a diversified portfolio, rather than a marginal allocation. That shift could also accelerate the growth of crypto-backed lending, particularly through mobile platforms.
For Gen Z consumers, applying for loans through apps—potentially backed by crypto holdings—feels more intuitive than traditional banking processes, she said, describing the experience as faster and more seamless.
“That is a magical experience,” Carvatt told Business Insider.
