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Bitcoin comes to hundreds of U.S. banks, crypto firm NYDIG says

CNBC has learned that Bitcoin may be taking a new step towards mainstream adoption.

According to cryptocurrency storage companies, customers of some U.S. banks will soon be able to buy, hold and sell Bitcoin through their existing accounts. NYDIG..

A subsidiary of Stone Ridge, a New York-based asset management company, the company is affiliated with FinTech giants. Fidelity National Information Service According to both companies, it will allow US banks to offer Bitcoin within the next few months.

Hundreds of banks are already enrolled in the program, according to Patrick Sells, head of banking solutions at NYDIG.The company is in talks with some of the largest US banks, but many of the lenders who have agreed to join are small institutions such as: Suncrest, A California-based community bank with seven branches.

“What we do is make it easier for everyday Americans and businesses to buy Bitcoin through existing banking relationships,” says Selles. “If you use a mobile application to do all your banking, you can now buy, sell and hold Bitcoin.”

Historically, Bitcoin adopters have relied on new-generation fintech player apps such as free transaction brokerage. Robin hood, Payment giant PayPal And squareCryptographic-centric companies like, or Coinbase.. Meanwhile, banks have avoided Bitcoin for individual clients, but recently announced plans to allow a wealth of wealth management clients to bet on cryptocurrencies.

But banks are now looking for Bitcoin because they can see their customers sending dollars to Coinbase, Kraken and other crypto exchanges. Yang Jao, President of NYDIG.

“It’s not just the banks that customers think they want Bitcoin, but they say,’I’m looking at the data, so I need to do this,'” Zhao said. “They are watching deposits go to Coinbase, the galaxy and the Kraken around the world.”

Pressure from peers

When hundreds of small banks sign on, the giant JP Morgan Chase And Bank of America According to Rob Lee, Head of Digital Banking at Fidelity National Information, we may face the pressure to offer cryptocurrencies to retail banking customers.

March, Morgan Stanley Provided Bitcoin Fund to CNBC, the first client in the bank report last month. Goldman Sachs Immediately followed Announcement Unique and JP Morgan Reportedly We are considering our own products in combination with NYDIG.

However, in such cases, banks have driven Bitcoin into tens of millions of dollars of ultra-high net worth personal and family offices.

“Most people can’t invest in what institutional investors can invest,” Zhao said. “Because you can buy Bitcoin through a bank for just $ 1, you have an attractive asset that anyone can own for any amount of money. I think this is a huge deal for financial empowerment.”

Yan Zhao of cryptocurrency storage company NYDIG

Source: NYDIG

While Fidelity National Information, a bank vendor with nearly 300 million checking accounts, handles links to lenders, NYDIG handles bitcoin storage and transaction execution. The disclosure reveals that it is NYDIG, not the bank, that processes Bitcoin, and according to Zhao, cryptocurrencies are not insured by the FDIC.

Based in Jacksonville, Florida, Fidelity National Information is bank-enabled and provides access to services such as chatbots and Apple Pay.Heavyweight in the payments industry, two years ago bought Processor Worldpay has won $ 35 billion in the sector’s largest acquisition to date.

According to Sell’s, banks determine how much to charge customers for Bitcoin transactions and retain most of their commission income. NYDIG offers other services such as debit card rewards paid in Bitcoin after deploying the first Bitcoin products and new types of bank accounts guaranteed by the FDIC but interested in Bitcoin. Said that he was planning.

According to a survey commissioned by NYDIG, more people will own Bitcoin if they can own it through an existing bank. This gives you a single view of your financial assets, eliminating the need to sign up for another institution and fund your account with a transfer that typically takes 3-5 business days.

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Bitcoin comes to hundreds of U.S. banks, crypto firm NYDIG says

Source link Bitcoin comes to hundreds of U.S. banks, crypto firm NYDIG says

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