New York Digital Investment Group (NYDIG) has partnered with Fidelity National Information Services (FIS) to provide a framework for United States banks to offer crypto trading services to their customers.
Patrick Sells, the Bank Solutions Chief at NYDIG, said that several banks have already signed up for the program, with the majority being smaller financial institutions.
He added that the company is in talks with major US banks to participate in the program.
It has been reported that according to the NYDIG executive, major names such as Bank of America and JPMorgan may be incentivized to come on board once smaller banks begin to reap the rewards of retail crypto trading adoption. BoA is among one of the staunchest anti-crypto banks in the US, regularly disputing the value proposition of Bitcoin (BTC) and cryptocurrencies.
U.S. lenders want some of the crypto action! NYDIG has partnered with Fidelity National Information Services to provide the framework to enable direct Bitcoin purchases by bank customers. https://t.co/Ceoyk5awQe — Cointelegraph (@Cointelegraph) May 5, 2021
However, as part of the collaboration between NYDIG and FIS, participating banks will be able to offer direct crypto trading for their customers straight from their existing accounts. Banks greenlighting crypto trading could see US lenders competing with platforms like Robinhood, Coinbase, and Square, among others.
The report said that about 9.5 million customers traded crypto on Robinhood’s platform in the first quarter of 2021.
Yan Zhao, the President of NYDIG, said that the massive revenue being reported by the likes of Robinhood and Coinbase was the kicker for US banks to set their sights on retail crypto trading.
Thus, he added:
“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.’ They’re seeing deposits going to the Coinbase and Galaxies and Krakens of the world.”