$BTC: 300 community banks in the US set to start offering Bitcoin trading in 2022

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An estimated 300 community banks in the United States are expected to start offering Bitcoin trading via mobile apps in response to strong customer demand.

According to a report by American Banker, around 300 community banks in the United States are looking to bring Bitcoin trading to their customers in the first or second quarter of 2022 with the help of Bitcoin company NYDIG. The report claims that the American Bankers Association and the Independent Community Bankers of America have invested in NYDIG as part of this effort.

NYDIG is “a subsidiary of Stone Ridge, a holding company that has spearheaded the creation of forward-thinking companies in the worlds of technology and finance, including a $12 billion+ alternative asset manager” . It provides “Bitcoin products across all industries, from banking and insurance to fintech and nonprofits.”

Harold Reynolds, CEO of Georgia-based BankSouth with over $1.3 billion in assets, said:

“We have seen significant activity in cryptocurrency transactions from our client accounts, and a few investments have been quite large, which obviously catches our attention.”

As Oklahoma-based Vast Bank reported on February 4, 2021, on January 27, 2021, through a partnership with Coinbase, it “successfully executed” an “end-to-end cryptocurrency transaction,” thus becoming “the first nationally chartered financial institution to both purchase and provide custodial services for a digital asset on behalf of a customer and directly from their bank account.”

Then, on August 25, 2021, Vast Bank, which is “a trusted, family-owned financial institution serving its customers since 1982”, announced “the rollout of its new Crypto Banking service”.

Vast Bank CEO Brad Scrivner said at the time:

“We pride ourselves on getting to know our customers, and that starts with listening. At the heart of many of these conversations is crypto. For some time our customers have been asking why they can’t securely buy things like Bitcoin using their bank account, citing concerns about the reliability, safety and security of other platforms – all issues that have kept many consumers on the fringes of the crypto phenomenon.

“We have met this challenge head-on and dedicated significant resources to addressing this unmet need. We are excited to bring this service online and give all consumers the opportunity to explore the world of cryptocurrencies in a way that brings the peace of mind that only a bank like Vast can provide.

This August 2021 press release went on to say that “Through the Vast Bank Crypto Banking App, customers will have the ability to purchase a range of cryptocurrencies including Bitcoin, Bitcoin Cash, Cardano (Ada), Ethereum (Ether), Litecoin, Orchid, and Algorand.

According to the American Banker report, Scrivner is pleased with the performance of this service so far:

“The launch of Vast crypto banking has gone well. In the first four months since launch, we have grown our historical retail customer base approximately five times and those customers are in all 50 states and three US territories.“

On January 25, Flushing Financial Corporation (Nasdaq: FFIC), which is the parent company of Flushing Bank, issued a press release announcing that it had entered into an agreement with NYDIG to offer Bitcoin services to its customers.

According to the bank’s press release, John Buran, president and CEO of the bank, had this to say:

“As part of our ongoing digital transformation, we recognize the importance of staying abreast of emerging market trends and consumer demand for alternative financial services. By using NYDIG’s innovative technology to provide seamless access through our relationship with Q2, our online banking provider, we will be able to offer our customers the ability to buy, sell and hold bitcoin . This partnership offers our customers a fully integrated solution for transacting bitcoins in a safe and secure environment.“

And Patrick Sells, chief innovation officer at NYDIG, said:

“On behalf of NYDIG, I am delighted to welcome Flushing Bank and its customers to the bitcoin network,” said Patrick Sells, chief innovation officer at NYDIG. “Consumer interest in bitcoin is growing rapidly, and NYDIG has the tools and expertise to help community banks meet this demand. Working with forward-thinking institutions like Flushing Bank, we’re on the right track. way to achieve our mission of bitcoin for all.

WARNING

The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading crypto-assets involves the risk of financial loss.

IMAGE CREDIT

Featured image by “petre_barlea” via Pixabay

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