U.S. banking industry to open bitcoin trading within the year, “crypto-phobia” is about to be cured

Cryptocurrency custodian NYDIG has partnered with fintech mainstay Fidelity National Information Services, or FIS, to provide a technology framework for U.S. banks’ cryptocurrency trading services, according to a CNBC report on Wednesday.

Cryptocurrency custodian NYDIG has partnered with fintech mainstay Fidelity National Information Services, or FIS, to provide a technology framework for a cryptocurrency trading service for U.S. banks, according to a CNBC report Wednesday.NYDIG President Yan Zhao After launching the initial bitcoin transaction service, NYDIG plans to offer other derivative services, including debit card rewards paid in bitcoin and a new type of bank account that is guaranteed by the FDIC and pays interest using bitcoin, said Yan Zhao, president of NYDIG. (Note: FDIC is known as Federal Deposit Insurance Corporation, a company founded by the U.S. federal government to provide deposit insurance to commercial bank savings customers.)

U.S. banking industry to open bitcoin trading within the year, "crypto-phobia" is about to be cured

Patrick Sells, head of banking solutions at NYDIG, said in an interview with CNBC that hundreds of banks have already signed up for the service, most of them small financial institutions such as Suncrest, a California-based community bank that currently has seven branches. And the company is also negotiating with several other major U.S. banks to convince them to participate in the program. The chief also said that once smaller banks start to get substantial returns from the cryptocurrency trading business, giants such as Bank of America and JPMorgan Chase may compromise and get involved. And among them is Bank of America, one of the most staunchly anti-cryptocurrency banks in the U.S., whose management often questions the value of bitcoin and other cryptocurrencies.

U.S. banking industry to open bitcoin trading within the year, "crypto-phobia" is about to be cured

And so far, bitcoin investors have generally relied on apps from the new generation of fintech companies, such as Robinhood, the hot trading platform of the moment, payment giants PayPal and Square, or cryptocurrency-centric companies such as Coinbase. Banking giants, on the other hand, have also shied away from bitcoin until recently when they announced plans to allow some high-net-worth users access to cryptocurrency transactions. Banks participating in the NYDIG and FIS partnership will be able to offer cryptocurrency transactions directly from their customers’ existing accounts, a change that will go a long way toward reversing the banking industry’s passivity in the crypto market, and we may be seeing the first head-to-head between traditional banking and emerging exchanges.

NYDIG President Yan Zhao said. It’s not just that banks think their customers want bitcoin, banks are literally seeing the money flowing out to exchanges like Coinbases and Krakens.”

Fidelity National Information will provide banks with access to services like chatbots or Apple Pay. fis is also a heavyweight in the payments industry, having acquired the underlying payments platform Worldpay for $35 billion two years ago, the largest acquisition in the industry to date.

According to NYDIG’s research, more people would own their own bitcoins if investors traded them directly through their existing banks. The business would also avoid the awkward situation of having to wait three to five business days for money transfers to fund accounts on other exchanges.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/u-s-banking-industry-to-open-bitcoin-trading-within-the-year-crypto-phobia-is-about-to-be-cured/
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