Instead of having to deal with the burdensome regulatory requirements related to actually holding the cryptocurrency for their customers, the financial institutions that opt to make the service available will rely on Nydig’s custody services. Among these banks are North Carolina-based First Citizens Bank, and credit unions, including Bay Federal Credit Union in California, will be able to offer their clients cryptocurrency trading through mobile applications built by the payments provider.
The effort is the latest by Atlanta-based NCR to capitalize on demand it’s seeing from banks and credit unions tired of seeing cryptopurchases made from their accounts to outside exchanges. By providing these clients a way to buy bitcoin—and eventually spend it—within their existing accounts, the traditional financial institutions are part of a rising tide of those companies in direct competition with cryptocurrency exchanges. NCR president of digital banking Douglas Brown stated:
“We’re firm believers in the benefits of crypto and the strategic application, and that’s true for our banking relationships, as evidenced by Nydig, and across retailers as well as restaurants and the like.”
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