Some 300 community banks are expected to launch Bitcoin trading in the first half of 2022 in partnership with Stone Ridge subsidiary NYDIG, according to a Bank of America report.
The plan was first known in July. Over the past few months, banks have been busy dealing with regulatory issues.
Participants interviewed by American Banker stated that they are now close to launching support for Bitcoin after completing the partnership and addressing security concerns related to the new asset class.
While the idea of buying Bitcoin from banks sounds like an oxymoron, small banking institutions expect that accepting the cryptocurrency will help them survive.
Zach Bishop of Synovus Bank sees cryptocurrencies play a more prominent role in their business. However, he is only cautiously optimistic:
That doesn’t mean it’s going to go away in any way.
BankSouth CEO Harold Reynolds has noticed a huge increase in crypto investment among his bank’s clients.
Synovus Financial, another small bank in Georgia, plans to add Bitcoin trading to its mobile app later this year.
In May, as reported by U.Today, NYDIG signed a partnership with Fidelity National Information Services (FIS) to help banks deploy their Bitcoin products.
The cryptocurrency company, acting as a custodian, keeps client funds in cold storage to eliminate cybersecurity risks.
In July, NYDIG partnered with financial services technology provider Fiserv to enable hundreds of US banks and credit unions to offer Bitcoin to their customers.
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