An agreement between the payments company NCR and NYDIG has paved the way for approximately 650 banks in the United States to offer Bitcoin purchases to their approximately 24 million customers nationwide.
According to Forbes, the agreement between digital asset management company NYDIG – a sister company of Stone Ridge Asset Management – and NCR will allow community banks and credit unions to offer customers cryptocurrency trading through applications developed by the payment provider.
As Douglas Brown, president of Digital Banking at NCR, said:
We firmly believe in the benefits of encryption and strategic enforcement,” said Douglas Brown, president of digital banking at NCR.
According to the details of this agreement, participating Banks will be able to avoid the regulatory steps involved in maintaining cryptocurrency for their customers directly. Instead, they will rely on NYDIG’s escrow services and generate revenue by charging transaction fees (among other transaction services).
Head of Banking Solutions at NYDIG, Patrick Sells.:
I think you will see cheaper transaction fees through Banks than what you have on the market today. But Banks can determine what they want this transaction fee to be
Brown also added that he expects crypto to demand more time on behalf of the Banks’ customers. “Banking today is a daily or sometimes-a-day activity for people, which is what we usually see. Encryption reaches an hourly or sub-hourly depth level,” he said.
Demand for more cryptocurrency
A December 2020 survey – conducted by Cornerstone Advisors – found that nearly two-thirds of cryptocurrency holders would be willing to turn to their banks as a means of investing in the sector.
At the time, only 2% of banks shared this enthusiasm. However, banking giants such as JPMorgan Chase and Morgan Stanley have recently made positive statements about the cryptocurrency industry. In fact, in December, JPMorgan Chase strategists suggested that Bitcoin could take away the value of gold.
Morgan Stanley’s Bitcoin exposure plans were detailed in SEC documents in April of this year, and by June, the banking giant was already linked to four Bitcoin funds.