Hundreds of US banks soon will allow its clients to buy cryptocurrencies, including bitcoin (EXANTE: Bitcoin), CNBC has learned, citing New York Digital Investment Group (NYDIG). The fintech-crypto company has partnered with Fidelity National Information Services (FIS) to allow US banks to offer bitcoin in the coming months.
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Patrick Sells, Head of Bank Solutions at NYDIG, claims hundreds of financial institutions with several lenders are already in the program.
"What we are doing is making it simple for everyday Americans and corporations to be able to buy bitcoin through their existing bank relationships. If I am using my mobile application to do all of my banking, now I have the ability to buy, sell and hold bitcoin," Sells added.
With FIS, NYDIG will act as a custodian and trade execution provider. However, as Yan Zhao, President of NYDIG said, disclosures will "make it clear" that cryptocurrency will not be insured by the Federal Deposit Insurance Corporation. Later, NYDIG wants to start issuing debit card rewards paid in BTC, and a new type of bank account that is FDIC-insured.
Last month, NYDIG said its clients had taken advantage of the recent fall in the price of bitcoin to buy the crypto. According to the company, institutional investors had a "buy-the-dip mentality" during these risk-off events, suggesting increasing ease with handling bitcoin’s volatility.
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