Banks say they are ready to integrate cryptocurrency into their financial products

Banks say they are ready to integrate cryptocurrency into their financial products

US banks may soon give their customers to buy cryptocurrencies – Gecko

The New York Digital Investment Group (NYDIG) is a financial service dedicated to financial services Bitcoin. It has partnered with global banking technology solutions group Fidelity National Information Service (FIS) to provide and provide guidance to US banks seeking to offer exchange services.
Cryptocurrency Directly to its customers.

When asked by the American channel CNBC on Wednesday, Patrick Sell, director of banking solutions for NYDIG, said that many small banks had already signed up for the program, but also that the firm was in contact with large institutions . Actually, according to him, big banks prefer JP Morgan Or Bank of America, previously reluctant to bitcoin, may change its mind if the adoption of cryptocurrency trading proves successful for small banks.

More and more US banks’ increasing interest in access to crypto-assets can be explained by the success of exchange platforms Robin Hood Or Coinbase, the latter recently went public with flying colors. The amount of money deposited in the accounts of these platforms is staggering. Some 9.5 million Americans have traded cryptocurrency on the Robinhood platform since the beginning of the year and Coinbase deployed in Q20 2021 has revenue of $ 765 million. According to NYDIG President Yan Zhao, banks want a piece of the pie: “It’s not just banks that think their customers want bitcoin, they say: We have to do it, because we see the numbers.” They see deposits known in the world’s Coinbases, Galaxies and Krakens “.

A favorable legislative framework

Bitcoin is legal in the United States and is recognized as a digital asset that can be used to purchase goods and services. The country has one of the most developed cryptocurrency ecosystems in the world, but the legislative framework surrounding all this is still unclear. Different governing institutions do not all have the same definition of what cryptocurrency is, it has caused legal problems in the past. But federal legislation is being drafted to remove barriers to innovation. This will build a bridge between actors from different institutions and sectors to harmonize the laws surrounding cryptocurrency. Large investment banks such as Goldman Sachs or Morgan Stanley have already announced access to bitcoin investment funds.

The advantage for virtual currency exchange services operating with US customers is that a special license is required. You have to meet a whole bunch of requirements to achieve this: transactions, monitoring taxes, cooperation with authorities, and more. But the license is ultimately a promise of stability and reliability for banks interested in crypto trading solutions offered by NYDIG.

In contrast, most European banks are still cautious about adopting consumer cryptocurrency exchange solutions. The risk of volatility of these assets and the risk of money laundering still remain, although a new EU funding laundering directive of 2018 called for a trading platform to register in its member states and establish security and transparency requirements Needed. All is not yet perfect, but strict and clear rules to avoid fraud should gradually assimilate traditional banking institutions with the exchange of cryptocurrencies.

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About the author: Seth Grace

Seth is an all-around geek who loves learning new stuff every day. With a background in Journalism and a passion for web-based technologies and Gadgets, she focuses on writing about on Hot Topics, Web Trends, Smartphones, and Tablets.

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