Gen Z trusts crypto more than banks — and their choices are reshaping financial services
Younger Americans are showing a clear tilt toward cryptocurrency over traditional banks, driven less by ideology and more by practical demands for access, transparency and control, new consumer research suggests.
What the data show
- Protocol Theory, a consumer-focused crypto research firm, found that 49% of Gen Z adults have used a crypto exchange and 37% currently own or use crypto — evidence the firm calls “genuine preference.”
- That preference is nuanced: 56% of Gen Z said they want to hold assets themselves (self-custody), while 51% also said they prefer storing crypto with a bank or regulated provider. In other words, younger users value the option to choose.
- Trust is strongly generational. Protocol Theory CEO Jonathan Inglis told Decrypt that 22% of Gen Z and 24% of Millennials trust crypto more than banks to “safeguard their assets,” compared with 13% of Gen X and just 5% of Baby Boomers. “Gen Z is almost twice as likely as Gen X, and more than five times as likely as Boomers, to place primary trust in crypto,” Inglis said.
Why younger people lean crypto
Inglis argues this reflects “real economic constraints, especially where younger people feel shut out of legacy pathways.” He summarizes the driver succinctly: younger users seek “agency and control.” That means the ability to verify what’s happening with their money, decide how it’s held, and have clear lines of recourse and access.
Broader public skepticism persists
The generational tilt exists against a backdrop of wider skepticism. Pew Research Center (2024) data show just 17% of U.S. adults have invested in, traded, or used crypto — a figure that has remained steady over the past three years. Usage skews young: adults 18–29 account for 29% of crypto use versus roughly 8% among those over 50, a gap of more than three to one. Older adults are also more likely to report low confidence in the safety and reliability of cryptocurrencies.
Crypto’s reach into mortgages and housing finance
Gen Z’s growing crypto exposure is starting to affect longer-term financial decisions. Newrez, a U.S. mortgage lender servicing roughly $778 billion in loans, told Decrypt it will begin factoring Bitcoin and Ethereum holdings into certain mortgage qualifications — a move aimed at younger buyers, Newrez president Baron Silverstein said, noting a “higher and higher percentage of crypto assets” among future homebuyers.
Regulators are paying attention: in June last year, Bill Pulte, director of the U.S. Federal Housing Finance Agency, confirmed the agency will examine how crypto holdings should be treated in mortgage risk assessments. And the broader political push around housing — including a recent executive order from President Donald Trump limiting large Wall Street firms from buying single-family homes — keeps housing finance squarely on policy agendas.
Trust depends on verifiability and safeguards
Inglis warns that trust endures only when users can verify activity and retain meaningful control. It “breaks when people feel they are carrying full responsibility without usable safeguards, clear recourse, or predictable access,” he said.
Other industry research aligns with these findings. A recent OKX survey found adults under 45 report higher trust in crypto platforms than those 50 and older. An OKX spokesperson told Decrypt: “Gen Z and younger Millennials grew up in a digital world where trust is earned through what you can verify,” adding that these generations “tend to prioritize security, transparency, and control.”
Bottom line
Younger Americans’ affinity for crypto is not a wholesale rejection of regulated finance but a demand for options: the ability to self-custody when they want, or to rely on regulated providers when that makes sense. As that cohort accumulates assets and enters markets like housing, their preferences may push institutions and regulators to rethink how crypto fits into mainstream finance.
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