An agreement between payments company NCR and NYDIG has created a path for around 650 banks in the U.S. to now offer Bitcoin to their 24 million or so customers nationwide.
According to Forbes, the agreement between digital assets firm NYDIG and NCR will allow credit unions and banks to give clients crypto buying and selling through apps created by the payments companies.
“We are true believers in crypto’s benefits and its strategic application,” said Douglas Brown, the president of NCR’s digital banking branch.
These banks can avoid regulatory roadblocks involved in keeping cryptocurrency on behalf of their customers by using this service. They will rely on and use NYDIG’s custodial service, and will create revenue through transaction fees.
“I think you will see cheaper fees with banks compared to what we see today. But the banks get to decide what they want to charge,” NYDIG’s leader of banking solutions, Patrick Sells, said.
Brown reports that he anticipates that cryptocurrencies will require more time from banks’ customers. “Banking is usually a daily thing or couple of times per day thing for customers, which is what is usually seen. Crypto goes to an hourly or under level of increasing engagement,” he said.
A Dec. 2020 survey—done by Cornerstone Advisors—said that around 66 percent crypto holders would be willing to use their current bank as a way to invest in the asset.
Only 2% of banks had this enthusiasm at the time. However, large giants like Morgan Stanley and JPMorgan Chase have recently given positive comments about the crypto sector. In fact, in Dec., JPMorgan Chase analysts said that Bitcoin could erode gold’s value.
Morgan Stanley’s current Bitcoin investment plans were also revealed in SEC documents in April, with the banking giant being linked to four crypto funds already.
Author: Blake Ambrose