The idea is to bridge the gap in Bitcoin accessibility through NYDIG’s custody solution and FIS’s connection to lenders, nearly 300 million checking accounts. Banks see that their clients want crypto assets and send funds to crypto exchanges.
NYDIG, a subsidiary of Stone Ridge, a $10 billion New York-based asset manager, has partnered with fintech behemoth Fidelity National Information Services (FIS Global) to help address the accessibility gap Bitcoin as the crypto asset becomes more integrated with banking services.
As part of the announcement on Wednesday, FIS stated that it would allow banks to allow their customers to buy, sell, and retain BTC via their bank accounts without the need to open new accounts with controlled entities.
In addition, FIS Ventures, the company’s venture arm, made an undisclosed investment in NYDIG.
Rob Lee, head of Global Core Banking and Channels, FIS said:
“Unlocking these capabilities for financial institutions of all sizes levels the playing field for banking with bitcoin and can drive further innovation.”
According to Patrick Sells, head of bank solutions at NYDIG, hundreds of banks have already signed up for the platform, and they are in talks with some of the largest US banks. However, smaller institutions such as Suncrest are taking part for the time being.
“What we’re doing is making it simple for everyday Americans and corporations to be able to buy bitcoin through their existing bank relationships,”Sells said.
Customers will be able to purchase, sell, and keep bitcoin using the same smartphone application for banking.
Until recently, banks had previously avoided offering Bitcoin to retail customers when BNY Mellon, JPMorgan, and Goldman Sachs revealed their intentions. According to Yan Zhao, other banks are also requesting bitcoin because their customers are sending funds to cryptocurrency exchanges, president of NYDIG, who spoke to CNBC.
“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'”
Most citizens, according to Zhao, cannot invest in what institutional investors can, but allowing them to buy bitcoin through their banks with as little as $1 would be huge for economic empowerment.