NCR And NYDIG Enable Crypto Trading To 650 Banks’ 24 Million Customers In The US
US-based payments company NCR in partnership with NYDIG will soon enable over 24 million customers at 650 banks to buy Bitcoin.
A recent agreement between NCR and NYDIG has opened up a way for banks across the U.S. to offer Bitcoin buying options to their customers.
According to Forbes the deal would enable community banks including North Carolina-based First Citizens Bank and credit unions including Bay Federal Credit Union in California to offer crypto trading to their customers. The trading would done on mobile applications, built by the payments provider.
The deal will allow banks to offer bitcoin trading options without having to worry about regulations surrounding bitcoin ownership. In other words, the banks would be able to let their customers trade bitcoin without having to buy any coins themselves. Also, the banks would not hold any coins for their customers. Instead, the coins will be held on the apps built by the payments provider.
NYDIG tweeted that the new partnership will increase wider adoption of Bitcoin.
“NCR reaches 24 million consumers through its digital banking platforms and our partnership will offer turnkey access to Bitcoin for Main Street banks. Forbes covers how we’re working to expand customer access to the Bitcoin network.”
According to a report by Forbes, NYDIG president Yan Zhao said that the partnership with NCR is a boost for banks that can now provide their own crypto services.
“A lot of these banks have seen that one of the biggest outflows from their depositors is moving money from the bank to exchanges like Coinbase, and so that’s part of why banks are so excited to have this capability for themselves and for their consumers.”
NCR offers financial services in 160 countries, including digital banking options, ATMs and restaurant point-of-sale kiosks. NCR is the largest global provider of point-of-sale software to grocery and other retail stores, with a 45% market share, according to research firm RBR.
Customers Want Access To Crypto Trading
Customers have long wanted to have access to crypto options. It was due to pressure from customers that megabank Goldman Sachs had started to offer bitcoin and ether trading options.
A survey from 2020 by Cornerstone Advisors showed that 60% of cryptocurrency users would want to use their banks to invest in crypto. But at the time, only 2% of banks were willing to provide this option.
But with the growing popularity of bitcoin has come mounting pressure from bank customers. The customers only have one demand; they want to be able to trade crypto through their bank.
Banks currently cannot buy crypto assets. This is due to red tape and regulatory issues. But banks are increasingly finding new ways to offer their customers what they want.
With deals like the ones with NCR and NYDIG, banks can now give their customers access to crypto options. This eliminates the need for the banks to buy or own or even hold any crypto.
NYDIG Is Expanding In Crypto
NYDIG is a subsidiary of Stone Ridge. Stone Ridge is an alternative asset manager with $4 billion in digital assets in its custody as of February 2021.
The deal will see the parties making money from charging trading fees to the customers. Stone Ridge is a custodian of at least 30,000 bitcoins. Which are valued at $1 billion.
Assets under the firm’s management have now grown to over $6 billion. This being from the infrastructure partnerships with banks to offer them bitcoin services.
NYDIG’s infrastructure reportedly allows them to offer bitcoin services to about 70% of all U.S. banks.
Crypto Adoption Through Banks
There are 24 million customers across the 650 banks this deal applies to. Giving 24 million people access to the crypto market only means more adoption.
People trust banks. That is a fact. They wouldn’t put their money in it if they didn’t think the banks would keep it safe. So when a bank starts offering crypto options, customers will take this as a sign that cryptos are actually trusted assets.
Adoption is still a tricky thing when it comes to mainstream financial systems. Regulatory bodies are still trying to figure out how to properly regulate digital currencies. Hence, there are still a lot of blocks when it comes to access to crypto.
Being able to conveniently trade in crypto with your bank through an app on your phone will be a major improvement.
