NYDIG and NCR to give 650 US banks access to cryptocurrencies

The digital asset management firm NYDIG has signed an agreement with technology giant NCR, a provider of corporate-payments solutions. The deal will give 650 banks in the United States access to cryptocurrencies, Forbes reports.

.@NCRCorporation reaches 24 million consumers through its #digitalbanking platforms and our partnership will offer turnkey access to #Bitcoin for Main Street banks. @Forbes covers how we’re working to expand customer access to the Bitcoin network: https://t.co/eQkidhS7Sf

— NYDIG (@NYDIG_BTC) June 30, 2021

According to the publication, approximately 24 million users will be able to conduct digital-asset transactions through banking apps.

NYDIG will provide custody and trading of cryptocurrencies. The company will charge lenders a fee for each client conducting relevant transactions.

Liquidity will be provided by regulated OTC– platforms and Bitcoin exchanges. Banks will be able to set fees themselves.

“I think banks’ transaction fees will be lower than they are on the market today. But they themselves must decide exactly what amount they want to charge,” said Patrick Sells, head of NYDIG’s Banking Solutions.

Douglas Brown, President of NCR’s Digital Banking, suggested that in the future the company could hold cryptocurrencies on its balance sheet and offer an expanded range of services, including bitcoin purchases at ATMs.

“We have broader ambitions to create a range of cryptocurrency-based products that will spread across our multi-vertical markets, including retail and restaurants. We are also exploring other opportunities focused on digital banking,” Brown said.

NYDIG manages assets worth more than $6 billion. It is a subsidiary of Stone Ridge Assets Management. According to the latter’s co-founder Jay Zhao, banks want to profit from customers’ cryptocurrency purchases.

“Many banks have noticed that a significant portion of depositor outflows is tied to moving money toward exchanges like Coinbase. That is why they want to obtain this opportunity for themselves and their clients,” he added.

In May, NYDIG announced a partnership with fintech giant Fidelity National Information Services. Through the deal, clients of some American banks will be able to buy, sell and store bitcoin using existing accounts.

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