The era when US banks viewed cryptocurrencies as a bad thing may be coming to an end.
According to a CNBC report on Wednesday, the New Digital Investment Group has partnered with financial technology company Fidelity National Information Services, better known as FIS, to provide a framework for U.S. banks to offer cryptocurrency trading services to their customers.
Patrick Sells, head of banking solutions at NYDIG, told CNBC that several banks have already signed up for the program, with the majority being smaller financial institutions. However, Sells added that the company is in talks with major U.S. banks to join the program.
According to the NYDIG executive, big names like Bank of America and JPMorgan could be incentivized to join the program once smaller banks take advantage of the introduction of retail cryptocurrency trading. The BoA is one of the most stable banks against cryptocurrencies in the US and regularly denies the value proposition of Bitcoin (BTC) and cryptocurrencies.
As part of the cooperation between NYDIG and FIS, the participating banks can offer their customers direct trading in cryptocurrencies from their existing accounts.
Banks that give the green light to trading cryptocurrencies could see U.S. lenders compete with platforms like Robinhood, Coinbase, and Square, among others. As previously reported by Cointelegraph, around 9.5 million customers traded cryptocurrencies on the Robinhood platform in the first quarter of 2021.
In fact, NYDIG chairman Yan Zhao said the massive revenues from companies like Robinhood and Coinbase spurred US banks to turn their eyes to retail cryptocurrency trading:
“Banks not only believe that their customers want Bitcoin, they say, ‘We have to do this because we can see the data.’ You see deposits go to Coinbases and Galaxies and Krakens around the world. “
The fact that U.S. lenders are offering retail cryptocurrency trading will also mark a 180 degree turn in the consensus among the country’s financial institutions on cryptocurrencies.
Companies like Goldman Sachs and Morgan Stanley recently announced their plans to offer Bitcoin funds to institutional clients.