Gen Z in the US Trusts Cryptocurrencies More Than Banks, Study Finds

• According to an analysis by Protocol Theory, Gen Z in the US is choosing cryptocurrencies over banks.
• In addition, 56% of Gen Z prefer self-custody for crypto assets.
• Against the backdrop of these figures, mortgage lender Newrez said it intends to consider cryptocurrency holdings when assessing borrowers’ creditworthiness.

America’s younger generation (Gen Z) is increasingly placing more trust in cryptocurrencies than in traditional banks, favoring control, transparency, and the ability to manage their own assets independently. This is evidenced by consumer behavior research from crypto analytics firm Protocol Theory, as reported by Decrypt.

According to the report, Generation Z — the youngest adult age group — prioritizes the ability to verify what is happening with their assets, control how funds are stored, and choose independently between self-custody and regulated providers. 

Analysts call this a “genuine advantage,” noting that 49% of Gen Z respondents have already used crypto exchanges, and 37% currently hold or use cryptocurrencies.

At the same time, attitudes within the group are not uniform. Protocol Theory data shows that 56% of Gen Z want to self-custody their assets, while 51% also prefer storing cryptocurrencies with banks or regulated financial institutions. 

According to Protocol Theory CEO Jonathan Inglis, this behavior “reflects real economic constraints, especially where younger people feel shut out of legacy pathways.” 

He added that the key drivers of trust remain “agency and control.”

Inglis emphasized that trust in cryptocurrencies has a clear generational character. According to him, “22% of Gen Z and 24% of Millennials trust crypto more than banks to safeguard their assets,” while among Generation X this figure stands at 13%, and among Baby Boomers, just 5%. 

In his assessment, this makes Gen Z “almost twice as likely as Gen X, and more than five times as likely as Boomers, to place primary trust in crypto.”

As a reminder, in 2023, crypto exchange Bitget conducted a study among 255,000 respondents from 26 countries and found that Generation Z will be the driving force behind the crypto revolution.

At the same time, these trends are unfolding against a backdrop of broad public skepticism toward cryptocurrencies. Data from the Pew Research Center for 2024 shows that Americans’ views on the safety and reliability of cryptocurrencies vary significantly depending on age and personal experience. 

Adults aged 50 and older are far more likely to report low levels of trust, while overall crypto usage remains limited — only 17% of U.S. adults said they have invested in, traded, or used cryptoassets.

Meanwhile, crypto usage in the U.S. has remained unchanged for three years in a row. The highest concentration of users is among younger people: those aged 18 to 29 account for 29% of crypto users, while among people over 50, the figure is about 8%.

The preferences of younger generations are also starting to shape long-term financial decisions, including in the mortgage market. U.S. mortgage lender Newrez, which services loans totaling about $778 billion, said it will begin factoring bitcoin and Ethereum holdings into creditworthiness assessments for certain borrowers.

Company president Baron Silverstein explained that the move is aimed specifically at Generation Z, noting that prospective homebuyers have a “steadily rising share of cryptoassets” compared with older generations.

According to Protocol Theory, the combination of consumer crypto data, shifts in housing finance, and regulatory approaches suggests that questions of trust and control are moving beyond day-to-day use and are starting to affect long-term financial outcomes. Inglis summed it up: 

Notably, according to a Gallup survey, 64% of Americans view crypto assets as very risky investments.