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

May 06, 2021 07:10 PM AEST | By Team Kalkine Media
Follow us on Google News:


  • 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 |

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 |

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 |

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.


The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.

Top ASX Listed Companies

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK