According to a CNBC report, Bitcoin is coming to hundreds of U.S banks this year. Crypto custody firm NYDIG partners with Fintech company Fidelity National Information Services to enable banks to offer cryptocurrency in the coming months. NYDIG believes that the partnership could allow countless customers to buy, hold, and sell bitcoin through their existing bank accounts.
Hundreds of banks already enrolled in the program, according to Patrick Sells, head of bank solutions at NYDIG. While the firm is in discussion with some biggest U.S banks, many lenders have agreed to participate. These participants are from smaller institutions like Suncrest.
“What we’re doing is making it simple for everyday Americans and corporations to be able to buy bitcoin through existing bank relationships,” Sells said. “If I am using my mobile application to do all of my banking now I have the ability to buy, sell and hold bitcoin.”
People buying and selling Bitcoin have relied on apps such as Robinhood, PayPal, and Square or crypto-centric firms like Coinbase. According to Yan Zhao, banks asks for bitcoin because they can see their customer sending dollars to crypto exchanges.
The partnership seeks to simplify the process by cutting out the middleman of bitcoin exchange services. According to NYDIG president Yan Zhao, banks are “seeing deposits going to the Coinbase and Galaxies and Krakens of the world.”
“Most people can’t invest in things that institutional investors get to invest in,” Zhao said. “With bitcoin available through your bank to be purchased with as little as $1, now you have an attractive asset that’s available to be owned by anyone in any amount. We think that’s huge for economic empowerment.”
NYDIG will take care of bitcoin custody and trade execution, while FIS will handle links to lenders.
According to Sells, Bank determines how much to charge their customers for the bitcoin trade and will retain most of that fee revenue.
NYDIG also plans to provide other services:
- Including debit card reward paid in bitcoin
- A new type of bank account that is FDIC insured but pays interest in bitcoin
More people would own bitcoin if they could through their existing bank, according to a survey commission by NYDIG. That allows them a single view of their financial assets and avoids the need to sign up with another institution.
Some major banks have already begun providing access to bitcoin investment to their wealthy clients. Goldman Sachs announced to offer Bitcoin investment service to its wealth management clients.
