I think one of the things that banks hate cryptocurrency for is the fact that crypto allows people to not need banks anymore, making them essentially useless. You want to keep your money safe from people who would want to steal it? Use a cold-wallet and keep your money in there, problem solved. You want your money to compound in value while also keeping it in the same account? You can hodl your crypto for as long as you please, doesn't matter how, and you can almost always expect to earn money in this process. You want to prep your kids by opening an account for them that you could put money in consistently, probably college funds or whatever? Crypto can also do that.

A business model that can pretty much replace you will certainly leave you quaking in your boots, and this essentially is why I think banks and crypto, at least traditional banks in that regard, will never find a common ground to work with.