• 650 US banks will soon be able to buy bitcoin

  • On June 30, the enterprise payment giant NCR partnered with digital asset manager NYDIG to allow 650 US banks and credit unions to offer Bitcoin purchase choices to its customers. Community banks and credit unions will be able to offer cryptocurrency trading to their customers through mobile apps developed by NCR without having to deal with regulatory hurdles as a result of this one-of-a-kind partnership.

    Previously, the bulk of banks avoided delivering any crypto-related services due to regulatory concerns, with the exception of a few Wall Street banking behemoths. This arrangement eliminates that barrier, since NYDIG will function as the custodian for these institutions, allowing almost 24 million clients access. Customers can now buy and spend BTC directly from their banks, eliminating the need for a third-party exchange. NCR’s president of digital banking, Douglas Brown, said:

    “We believe in the value of cryptocurrency and its strategic uses. As evidenced by NYDIG, this is true of our banking connections, as well as merchants, restaurants, and other businesses.”

    The Atlanta-based company was compelled to make this move due to an increase in client demand for crypto assets. Banks and credit unions were frustrated by crypto-purchases made from their accounts to outside exchanges, so the payment giant jumped on the opportunity. As a result of this collaboration, these institutions are now in direct rivalry with crypto exchanges that formerly held a market monopoly.

    Stone Ridge co-founder Yan Zhao, who joined NYDIG as president in December 2020 said:

    “A lot of these banks have found that one of the largest outflows from their depositors is moving money from the bank to exchanges like Coinbase…And so that’s part of why banks are so pleased to have this capacity for themselves and for their consumers.”

    As of March 2021, NYDIG’s crypto portfolio was valued at roughly $6 billion, with its parent company, Stone Ridge Holdings Group, owning at least 30,000 bitcoins worth $1 billion. According to the company, this agreement allows them to provide bitcoin services to around 70% of US institutions.

    This isn’t NCR’s first foray into the cryptosphere; the company previously teamed with crypto payment provider Flexa to allow customers at Sheetz’s 600 locations to pay for petrol and other items in Bitcoin and other cryptocurrencies.

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