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650 U.S. banks will soon be able to offer cryptocurrencies

30 Jun 2021 : 18:06
2 min read
  • 650 banks will soon be able to offer cryptocurrencies to their customers
  • The option to offer crypto is realized through a collaboration between NYDIG and corporate payments giant NCR
  • Banks offering crypto will allow them to compete with the cryptocurrency exchanges

A partnership between digital asset management firm NYDIG and NCR will make crypto purchases available to 650 banks and credit unions.

24 million customers will be able to make crypto purchases  at 650 banks

The option to offer cryptocurrencies is made possible through a collaboration between NYDIG and corporate payments giant NCR. NYDIG is a bitcoin technology and financial services subsidiary of Stone Ridge, a $10 billion alternative asset manager.

The partnership will allow the 650 banks to offer cryptocurrencies to 24 million customers. Community banks including North Carolina-based First Citizens Bank and credit unions including Bay Federal Credit Union in California will be able to offer their clients cryptocurrency trading through mobile applications built by the payments provider.

Instead of dealing with the sometimes inconvenient regulatory requirements related to holding the cryptocurrency for their customers, the financial institutions that opt to make the service available will rely on NYDIG’s custody services.

Providing crypto services to banks will allow for more competition with exchanges

Speaking to Forbes, Stone Ridge co-founder Yan Zhao explained that banks are tired of seeing their customers wire money from their bank account to cryptocurrency exchanges. He added that providing crypto services while staying in the current banking infrastructure will create direct competition with crypto-native exchanges. He said: “A lot of these banks have seen that one of the biggest outflows from their depositors is moving money from the bank to exchanges like Coinbase. And so that’s part of why banks are so excited to have this capability for themselves and for their consumers.”

NYDIG had announced the move to offer crypto trading at the beginning of May. At the time, it outlined its intentions to challenge the likes of Robinhood, Coinbase, and Square.

 


About Author

Stan Colenbrander

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Stan is the head of news and podcast host at Cryptonary. He was formerly a member of the Cryptonary Pro community. In early 2021, he decided to drop out of journalism school at university to pursue journalism in real life and make an impact in the crypto space. . His areas of interest include the NFT industry, decentralised finance, and crypto start-ups.

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