Bitcoin Emerging from the Underground: New Innovations to Allow Banks to Deal with Bitcoin Directly

Summary

  • Banks can now offer customers the ability to purchase, sell and hold Bitcoin after fintech leader FIS partnered with cryptocurrency technology firm NYDIG.
  • The new collaboration would allow banks to provide Bitcoin services within their apps using FIS Digital One Mobile technology, making the purchasing of Bitcoin within their banking system quicker, easier, and more convenient.
  • Bitcoin’s perception as an underground asset has changed dramatically in the last year due to its acceptance amongst various reputable institutions.

A new, industry-first solution will allow banks to provide customers the power to sell, buy, and hold Bitcoin (BTC) through their bank accounts.

Financial technology leader FIS has invested in a cryptocurrency technology firm, NYDIG, to revolutionize the current relationship between banks and bitcoin acceptability.

NYDIG, a subsidiary of the New York-based US$10 billion asset manager, Stone Ridge, is a technology service firm dedicated to Bitcoin whereby experts help clients navigate the emerging asset class.

DO WATCH: How to trade in Cryptocurrency?

Source: © Velishchuk | Megapixl.com

What Does This Move Mean?

The recent collaboration means that instead of the previous system, where customers and businesses were required to go outside their banking system to acquire bitcoin, the new system would allow banks to provide Bitcoin services within their apps using FIS Digital One Mobile technology.

Cryptocurrencies, particularly Bitcoin, has made leaps and bounds in the past 12 months mainly. Yet, up until now, prospective buyers of the number one crypto have been required to go venturing outside of their banks to purchase. The move by the Fintech giant hopes to make the purchasing of Bitcoin within their banking system quicker, easier, and more convenient.

NYDIG CEO Robert Gutmann says that the partnership with FIS will bridge an accessibility and credibility gap for those customers who want to sell, buy, and hold the ever-growing Bitcoin.

Head of Global Core Banking and Channels for FIS, Rob Lee, referenced the growing market demand and their core customers’ ability to respond to this ever-increasing trend. He further emphasized the potential for innovation on the back of the levelling of the playing field for those banking with Bitcoin.

Is Bitcoin becoming a Legit Coin?

This latest move further cements Bitcoin as an asset class that no longer lingers in the shadows of the financial underworld, as was its perception until about a year. Although perhaps merited given the coins volatility over the years, this perception has lingered since its inception over a decade ago.

However, in the past 12 months, particularly in 2021, the financial establishment has somewhat changed its tune as various events have altered Bitcoin’s reputation from an asset which one invested at their own peril.

Bitcoin’s Changing Perception in the Last 12 Months

Elon Musk has consistently sung the praises of Bitcoin for many years now.  The apex of his enthusiasm for the coin culminated in a US$1.5 billion investment in February 2021.

Tesla made a significant investment in Bitcoin in February (Source: © Serazahmed99 | Megapixl.com)

Before the massive Bitcoin investment by Tesla (NASDAQ:TSLA), the world’s number one cryptocurrency was given further credibility when the online digital payment app, PayPal (NASDAQ:PYPL), allowed its customers to transact Bitcoin and other cryptos through their PayPal accounts.

But perhaps the most significant factor in bringing Bitcoin to a more mainstream audience was the announcement in April that popular trading platform, Coinbase (NASDAQ:COIN), would now be publicly traded on the NASDAQ.

Source: © Burdun | Megapixl.com

This week in the US, the world’s leading index, the S&P Dow Jones Index, launched a new series of digital asset benchmarks, called the S&P Digital Market Indices. The hope is that this move will create fewer complications for investors in analyzing, assessing, and having access to Bitcoin.


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