American banks might be changing their tone on cryptocurrencies soon.
U.S. lenders are about to allow customers to buy Bitcoin directly from their accounts, and it doesn't seem like they're going to stop there!
New York Digital Investment Group, a major player in fintech, has partnered with Fidelity National Information Services to provide a framework that will allow American banks to offer crypto trading services.
The company has already convinced several banks to sign up for the program, with smaller financial institutions comprising a large majority. They are currently in talks with major U.S Banks about participating as well and hope that this will be successful so all consumers can experience these new benefits of banking!
When the small banks start making money from trading crypto, naturally Bank of America and JPMorgan will come on board. Even BoA which is currently staunchly against Bitcoin (BTC) may change their mind once they realize how profitable it can be for them in a year or two.
As a result of the partnership between FIS and NYDIG, banks across the country will offer direct cryptocurrency trading from their existing accounts. This means that your banking account can now serve as a wallet or exchange.
The widespread adoption of cryptocurrencies from banks would dramatically change the industry landscape altogether. With such an unregulated market, banks are forced to compete with platforms like Robinhood and Coinbase for customers - which is set to be quite interesting, especially considering that companies like Square can now offer products including both loans and cryptocurrency services.
Indeed, Yan Zhao - president of the NYDIG- said that banks are set on a new crypto trading strategy due to their sights being directed by Robinhood and Coinbase's reports for massive profit.
“This is not just the banks thinking that their clients want bitcoin, they're saying 'We need to do this, because we see the data.' They're seeing deposits going to the Coinbases and Galaxies and Krakens of the world.”
It is no secret that the U.S has been an enemy to Bitcoin and other cryptocurrency interests for a while now, but with this new accomplishment, it appears all of that could be changing very soon.
With the recent announcement that Goldman Sachs and Morgan Stanley will offer Bitcoin funds to institutional clients, it's safe to say they've recognized a potentially lucrative market with much room for growth.
