Almost 24 million bank and credit union customers can buy cryptocurrencies using their accounts.
Bitcoin is the most popular cryptocurrency among institutional buyers
About 650 US banks and credit unions are set to offer access to Bitcoin and cryptocurrency trading to millions of customers.
This is after collaborative work between the financial institutions and enterprise payments firm National Cash Register (NCR) and digital asset management platform NYDIG, Forbes reports.
The initiative allows customers to buy and trade Bitcoin directly from their accounts, with the regulatory framework allowing for holding of cryptocurrencies provided for by the NYDIG’s custody services.
Project to benefit 24 million customers
Close to 24 million clients will have access to crypto purchases and trading services, doing so via mobile apps built by the NCR.
While customers can buy directly with their accounts, the cryptocurrency they purchase will come from regulated digital asset exchanges and OTC desks, allowing banks to offer them at a slight markup to cater to investment advice provided.
On the other hand, custody provider NYDIG will earn a fee, to be paid per user per month, from the bank.
According to Patrick Sells, NYDIG’s head of bank solutions, users are set to benefit from cheaper transaction fees as a result of this arrangement. However, the banks will have leeway on just how much the transaction fee will be, suggesting a variation in fees across different banks.
Expansion across ‘multi vertical markets’
NCR has been in operation for over 130 years and is currently providing financial services to thousands of clients. With crypto in the limelight following increased interest from institutional and retail investors, the plan is to expand these services even further.
“We have a broader ambition to do a multitude of things with crypto that will extend into our multi vertical markets, retailers and restaurants,” Brown told Forbes.
NCR has a presence in 160 countries, where it provides services that include digital banking, ATMs, and payment services to thousands of restaurants and retail outlets.
The company has plans to bring crypto payments to 200,000 restaurants and retail outlets, while it also targets making its 800,000 ATMs available for Bitcoin purchasing.