Banks have been skeptical about providing cryptocurrency services to their clients. Instead, most of them focus on offering services to crypto companies. This could all change thanks to a partnership between FIS and NYDIG.
NYDIG collaborates with FIS on Bitcoin adoption
NYDIG, the bitcoin-focused subsidiary of investment firm Stone Ridge has partnered with fintech firm FIS to provide a new service that would allow banks to offer bitcoin capabilities to their customers. This latest development will make it possible for banks to allow their customers to buy, sell, and hold Bitcoin.
In a press release yesterday, FIS said, “Financial technology leader FIS® (NYSE: FIS) today announced an industry-first solution that enables banks to offer their customers the ability to buy, sell, and hold bitcoin via their bank accounts.” The partnership is expected to solve some of the problems in the crypto space.
At the moment, individuals and corporations usually open new accounts, sometimes with unregulated entities, and move outside of the traditional banking system to buy bitcoins. “The new solution taps into the advanced functionality of the FIS Digital One™ Mobile solution to allow banks to provide bitcoin services via a seamless, easy-to-use digital experience – enabling them to drive fee income and better attract and retain customers,” the post reads.
Thanks to this solution, traditional banks would now allow their customers to buy, sell, and hold bitcoins with them. NYDIG, thanks to its partnership with FIS towards the end of last year, will provide a secure custodial and trading platform for managing the bitcoin transactions.
Demand for cryptocurrencies led to the partnership
Rob Lee, head of Global Core Banking and Channels, FIS, stated that this partnership is due to the rising demand for bitcoin and other cryptocurrencies. The fintech firm is focused on enabling their core banking clients to respond to growing market demand and better serve their customers. He added that unlocking the capabilities for financial institutions at all levels evens the playing ground for banking with bitcoin, leading to further innovation in the industry.
Robert Gutmann, co-founder and CEO of NYDIG, commented that although Bitcoin adoption is growing, some people still find it challenging to buy, sell, and hold the cryptocurrency. “Working with an innovative leader like FIS on this integration will usher in a new age of financial freedom, choice, and trust for consumers with their existing banks. We welcome FIS as an investor, and we are deeply excited about how our partnership can elevate banks across the country,” Gutmann said.
More traditional banks are entering the cryptocurrency space, with the likes of Goldman Sachs, JPMorgan, BNY Mellon, and Morgan Stanley all offering crypto-related services to their clients.
