Facilitate the crypto transition of banks: New York Digital Investment Group (NYDIG) and Fidelity National Information Services (FIS) collaborate to design a Bitcoin buying, selling, and storage (BTC) solution for US banks.
Crypto services for their clients’ customers
New York Digital Investment Group has partnered with fintech Fidelity National Information Services to enable US banks to offer their customers the ability to buy, sell, and hold Bitcoins from their current accounts.
In addition, the branch of FIS specializing in venture capital, FIS Ventures, invested an undisclosed amount in NYDIG.
According to the 2 companies, the solution they offer will be available in the coming months. FIS will provide a user-friendly interface for trading services BTC via its Digital One mobile application. NYDIG will take care of the custody and execution of transactions.
Joint services offered by NYDIG and FIS will emerge in a context where traditional financial institutions are interested in the possibility of adding crypto services for their customers.
According to the president of NYDIG, Yan Zhao, US banks see their customers sending large amounts to exchanges and therefore see a development opportunity.
Such services will not only compete with exchanges like Coinbase or Kraken, but also crypto offers from payment giants such as Square and PayPal.
Hundreds of registrations and rewards
Zhao noted that the big banks, however, focus mainly on institutional investors, to the detriment of retail clients.
In April 2021, Morgan stanley announced that it would allow certain mutual funds to invest “indirectly” in Bitcoin through futures BTC paid in cash, via the Grayscale Bitcoin Trust.
Goldman Sachs would also like to provide exposure to Bitcoin and other cryptos to its customers, in the coming months.
NYDIG currently in discussions with several major US banks. Hundreds of small banks across the country, including the California Community Bank Sunset, would already be registered in the program.
NYDIG plans to offer rewards in BTC by debit card, as well as a new type of FDIC-insured bank account that would pay interest in cryptocurrency.
Cryptocurrencies are gaining more and more ground in the banking industry. US banks want their share of the pie, no way the exchanges binge on their own. Even the strongest supporters of the greenback could therefore return their jacket.
Fashion is good, but blockchain is the future, we agree, right ?! It’s a great opportunity and an evolving sector! On a daily basis, my job is to try to popularize cryptos / blockchains as well as possible, which appear to be far too technical.
The comments and opinions expressed in this article are those of the author alone, and should not be considered as investment advice. Do your own research before making any investment decisions.