650 U.S. banks will soon be able to offer bitcoin purchases to an estimated 24 million total customers. The move is the latest by Atlanta-based payments giant NCR, and NYDIG, to capitalize on demand it’s seeing from banks and credit unions tired of seeing crypto-purchases made from their accounts to outside exchanges.
By providing these clients a way to buy and spend bitcoin within their existing accounts, these institutions are putting themselves in direct competition with cryptocurrency exchanges.
NYDIG itself plans to hold the exact amount of assets its clients buy in an off-line, cold-wallet, custody environment. “Every dollar of customer bitcoin is actually bitcoin that is held in custody, in trust, for the customers,” says Yan Zhao, NYDIG president.
The move will generate revenue by charging cryptocurrency transaction fees and providing additional investment services that could translate into additional income for the banks and Credit Unions.