Hundreds of banks throughout the United States are about to offer bitcoin and cryptocurrencies to their customers thanks to their new partnerships with NYDIG.
NYDIG Is Paving the Way for “Crypto Banks”
NYDIG is stationed in New York and is a cryptocurrency custody firm. It is also a division of Stone Ridge, an institutional office that made headlines late last year after it invested more than $100 million into bitcoin. The firm has now partnered with Fidelity National Information Services to allow banks from all corners of the country to potentially offer bitcoin and digital assets to their customers.
According to Patrick Sells – head of bank solutions at NYDIG – many banks have already signed up for the services, allegedly feeling the pressure to become part of the growing crypto craze. It has become quite clear over the past year that Americans and people from all over the world now see bitcoin and its altcoin cousins through a very different lens. It used to be that these assets were purely speculative; things that when played correctly, could make one rather rich overnight.
However, now bitcoin and digital currencies have become so much more. With the coronavirus pandemic making its way through the global financial spectrum, many fiat currencies have ultimately lost their edge thanks to growing inflation and stimulus measures, which have required excessive money printing. Thus, many have turned to bitcoin as a means of regaining the power and strength their portfolios once held. Bitcoin is now being viewed as a hedge tool that can keep one’s money safe during times of economic strife.
This has potentially led to the meteoric rises of bitcoin and many other cryptocurrencies over the past 14 months, and it looks like several banks are acknowledging the heaving strength of the digital asset space. Thus, they want to be able to stay competitive and retain their customer rosters by offering crypto as needed.
What we are doing is making it simple for everyday Americans and corporations to be able to buy bitcoin through their existing bank relationships. If I am using my mobile application to do all my banking, now I can buy, sell and hold bitcoin.
The Craze Is Expanding
Many banks are becoming privy to the crypto activities of their customers given their past account behavior. They notice that these individuals are sending and receiving money from exchanges such as Coinbase, and they know they could be out on the streets if they do not cooperate and “get with the times.” Yan Zhao – president of NYDIG – says:
This is not just the banks thinking that their clients want bitcoin. They are saying, ‘We need to do this because we see the data.’ They are seeing deposits going to the Coinbases and the Galaxies and the Krakens of the world.