NCR and NYDIG have struck a new deal that opens the way for banks across the U.S. to offer their customers exposure to bitcoin purchases.
Forbes reports that the deal will enable community banks, including First Citizens Bank of North Carolina, and credit unions, including Gulf Coast Federal Credit Union in California, to offer crypto transaction business to their customers. The business will be conducted on a mobile app developed by the payment service provider.
The deal will allow banks to offer bitcoin options without having to worry about regulation surrounding bitcoin ownership.
In short, banks can allow their customers to trade bitcoin without having to purchase any cryptocurrency themselves.
Banks will not hold any cryptocurrencies for their customers. Instead, the cryptocurrencies will be held on an application built by the payment provider.
Clients have long wanted access to business services in the crypto space. Due to pressure from clients, large banking institution Goldman Sachs started offering bitcoin and ethereum trading options to its clients.
A survey conducted by Cornerstone Advisory Advisors in 2020 showed that 60% of cryptocurrency users wanted to use their banks to participate in cryptocurrencies. But at the time, only 2% of banks were willing to offer such services.
But as Bitcoin grows in popularity, banks are under increasing pressure from their customers. Customers have only one demand; they want to be able to conduct crypto transactions through their banks.
Banks are currently unable to buy crypto assets, due to red tape and regulatory issues. But more and more banks are looking for new ways to provide their customers with what they want.
With deals like NCR and NYDIG, banks can now give their customers access to crypto business services. This removes the need for banks to buy, own or even hold any cryptocurrency.
NYDIG expands its footprint in the crypto space. NYDIG is a subsidiary of Stone Ridge, an alternative asset management firm that has $4 billion in digital assets in custody as of February 2021.
The deal will allow both NCR and NYDIG to profit from the transaction fees charged to customers. stone Ridge is the custodian of at least 30,000 bitcoins worth $1 billion.
Stone Ridge now has over $6 billion in assets under management. This comes from an infrastructure partnership with banks, with NYDIG providing bitcoin services to banks.
NYDIG’s infrastructure reportedly allows them to provide bitcoin services to about 70% of U.S. banks.
And what does this mean in terms of bitcoin adoption? This transaction applies to 650 banks with 24 million customers. That means that 24 million people have the option to access the crypto market and more people are going to adopt cryptocurrencies.
People trust banks, that’s a fact. If they don’t think the bank will keep the assets safe, they won’t put their money in.
So when a bank starts offering crypto business services, customers will see this as a sign that crypto assets are actually trusted assets.
The adoption of cryptocurrencies remains a tricky matter when it comes to the mainstream financial system. Regulators are still working on how to properly regulate cryptocurrencies, so there are still many obstacles before full adoption of cryptos.
However being able to conveniently conduct crypto transactions with banks through an app on your phone will be a game changer at the moment.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/with-a-partnership-650-u-s-banks-have-the-opportunity-to-open-up-their-exposure-to-bitcoin-trading/
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