In regards to the latest traction gained by the Bitcoin (BTC) cryptocurrency, 300 U.S. community banks are considering offering Bitcoin trading via their banking apps.
According to the latest story of an American Banker, almost 300 community banks in the US are building the groundwork to provide BTC trading to their customers. Different banks plan to launch this service anywhere by the second quarter of 2022. The American Bankers Association and the Independent Community Bankers of America have invested in NYDIG (New York Digital Investment Group) for this purpose.
President of NYDIG, Yan Zhao says banks are now demanding crypto coins as they notice variable transactions happening to digital crypto wallets like Coinbase, Kraken, Galaxies through their customer’s accounts. As the amounts are quite big and frequent, they fear losing the customer base and market control in near future.
“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 Coinbases and Galaxies and Krakens of the world.”
By Yan Zhao, NYDIG President
US’s first bank to introduce BTC trading in 2021
Back then 2021, the Vast Bank successfully executed an end-to-end cryptocurrency transaction on January 27, 2021. After partnering with Coinbase, the Vast Bank provides their customer’s custody services for their digital assets directly from their bank accounts. Thus, making them be the first US-based bank to offer BTC trading.
The Vast Bank CEO, Brad Scrivner stated,
“We take pride in getting to know our customers, and that starts with listening. At the heart of many of these conversations is crypto. For quite some time, our customers have been asking why they cannot securely purchase the likes of Bitcoin using their bank account, citing concerns over trustworthiness, safety, and the security of other platforms—all issues which have kept many consumers parked on the sidelines of the crypto phenomenon.
“We took this challenge head on, and devoted significant resources to answer this unmet need. We’re excited to bring this service online, and give all consumers the opportunity to explore the world of cryptocurrencies in a way that brings peace of mind that only a bank like Vast can provide.“
Synovus Financial formerly known as Columbus banks based out of Columbus, Georgia, US manages almost $56 billion in assets. It plans to launch BTC trading via mobile app in the first quarter of 2022.
“We think that that’s the beginning point of how the operational structures on the back end of the bank need to start to pivot toward working on blockchains. Cryptocurrency was the first place we wanted to be.”
By Zack Bishop, Executive Vise President, Synovus Financial
Do you think this move will lead to higher adoption and acceptance of crypto in the world? Leave your feedback in the comments below.
