- A new initiative has been created due to strong demand from NCR banking clients whose customers have been buying crypto from exchanges.
- NYDIG and NCR will enable 650 banks and credit unions to make Bitcoin purchases available to their customers.
- The new partnership could reach 24 million customers through the banks that NCR services.
Digital asset management firm New York Digital Investment Group (NYDIG) and NCR Corporation are making cryptocurrency purchases available to 650 banks and credit unions in the United States.
Banks witness biggest outflows from existing accounts to exchanges
An estimated 24 million total customers will soon be able to make Bitcoin purchases through the 650 banks in the US as part of a deal between enterprise payments giant NCR and crypto asset management firm NYDIG.
Community banks, including First Citizens Bank based in North Carolina and California-based Bay Federal Credit Union, will offer cryptocurrency trading to their clients through mobile applications built by NCR.
The payments giant has seen a growing demand from banks and credit unions – who have been missing out on cryptocurrency purchases made from their accounts to external exchanges. The new method of buying Bitcoin will be enabled within clients’ existing accounts.
Douglas Brown, NCR president of digital banking, said:
We’re a firm that believes in the benefits of crypto and the strategic application. That’s true for our banking relationships, as evidenced by NYDIG, and across retailers as well as restaurants and the like.
The 650 financial institutions that have chosen to make the cryptocurrency purchase services available to customers would not have to deal with regulatory requirements of holding Bitcoin, as they will be relying on NYDIG’s custody 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,” said Yan Zhao, NYDIG president. “That’s part of why banks are so excited to have this capability for themselves and for their consumers.
The first phase of the partnership will allow NCR’s banking clients to buy, sell and trade Bitcoin and other cryptocurrencies through their mobile application. NYDIG, acting as the custody for the actual assets, will receive a per-user per-month fee from the bank.
According to Patrick Sells, head of bank solutions at NYDIG, this method will lead to cheaper transaction fees through banks than the marketplace.