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Hundreds of U.S. Banks Will Offer Bitcoin Trading This Year

For the first time, banks will offer their clients the possibility of buying, selling, and securing Bitcoin through their bank accounts, according to the companies in a statement.

Big banks offering crypto services
Crypto custody solutions are in high demand (Photo by @photosbychalo on Unsplash)

Key facts:

  • The New York Digital Group (NYDIG) will handle Bitcoin custody and trade execution.

  • Small banks see their customers increase their use of crypto exchanges.

The New York Digital Group (NYDIG) firm, a provider of technology solutions and financial services dedicated to Bitcoin, reported that it partnered with the financial technology company Fidelity National Information Services (FIS) to ease the adoption of Bitcoin (BTC) to the US banks.

FIS, which provides banking services to almost 300 million checking accounts, will handle the relationship with lenders, while NYDIG will control the custody of Bitcoin and the commercial execution.

The agreement also considers using the digital banking platform FIS Digital One™ Mobile to allow banks to provide Bitcoin services "through a seamless and easy-to-use digital experience," allowing banks to "generate revenue from fees. And attract and retain customers".

According to the US network CNBC, hundreds of banks have shown interest in participating in this initiative. Most of the financial entities that accepted the services of NYDIG and FIS are retail banks. Among those is Suncrest, a small California-based bank with seven branches.

For NYDIG president Yan Zhao, this new partnership is the consequence of banks increasingly observing how their customers send money to exchanges such as Coinbase and Kraken. Zhao indicated that all people with a bank account would acquire Bitcoin, even with one US dollar. "We think that is huge for the economic empowerment" of people.

This new step by small banks could pressure financial giants such as Goldman Sachs or Morgan Stanley. Big banks offer cryptocurrency custody services only to wealthy clients, to turn their attention to retailers, said Rob Lee, director of digital banking at FIS. Lee noted that the demand for Bitcoin as a store of value is on the rise. In this sense, they want to "allow financial institutions to respond to growing market demand and better serve their customers."

NYDIG also wants a Bitcoin ETF

NYDIG is a firm that has been making its way into the Bitcoin world and has bet big to be a relevant player in the industry. Last February, some news outlets reported that the company had submitted to the United States Securities and Exchange Commission (SEC) a request to approve a Bitcoin exchange-traded investment fund (ETF).

So far, the SEC has not responded to the more than eight requests for Bitcoin ETFs that different organizations have submitted. However, they could be "very productive years" for cryptocurrencies, Hester Peirce, commissioner of the body, recently declared concerning Gary Gensler, the new president of the SEC.

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