American Banks are Now Seeking Opportunity to Trade in Cryptocurrencies

Deepshikha  |  May 6, 2021

American banks are found to seek an opportunity to get involved in Bitcoin transactions as the existing clients of the banks are increasingly participating in the crypto industry. Active participation of clients is observed in depositing funds in the crypto exchanges, which is majorly concerning the Bank.

NYDIG and FIS Plans to Deal in Cryptocurrencies

According to reports, the Cryptocurrency custody firm New York Digital Investment Group (NYDIG) alongside fintech platform Fidelity National Information Services (FIS), meanwhile working on a plan to assist their client base to trade in Bitcoin.

According to NYDIG president Yan Zhao,

“This is not just the banks thinking that their clients want bitcoin; they’re saying `We need to do this because we see the data’. They’re seeing deposits going to the Coinbases and Galaxies and Krakens of the world.”

Undeniably banks want to be part of the crypto ecosystem in whichever way possible. The banks are looking to ease transactions in Bitcoin on leading digital asset platforms like Coinbase, for their clients. 

According to the data, FIS will act as a vendor to banks with almost 300 million checking accounts while NYDIG will handle the custody side of Bitcoin alongside trade execution.

American Banks Have Already Signed The Initiative

As the NYDIG revealed;

“Hundreds of banks have already signed up for the initiative, with deliberations still ongoing with leading institutions. Notably, only small-scale lenders like California’s Subcrest have enrolled for the program.”

After the enrollment of small-scale banks of the industry, certain pressure will be likely to be generated on the big ones like JPMorgan Chase and Bank of America.

At present Morgan Stanley is among the top lenders that offer Bitcoin funds to their clients.

Lastly, NYDIG schemes to broaden its services to offer debit card rewards paid in Bitcoin. Concerning the advantage of the move, it will surely push the digital currency more towards mainstream adoption. 

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