300 US Community Banks to Enable Cryptocurrency Trading by 2022, Reports Reveal

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300 US Community Banks to Enable Cryptocurrency Trading by 2022, Reports Reveal For Angel Di Matteo @shadowargel

Many of these entities will achieve what they have proposed thanks to an alliance with nydig, entity that will serve as a custodian and intermediary to allow bank customers to access currencies such as Bitcoin.

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Reports published in the middle of this month reveal that at least 300 community banks in the US are almost ready to start offering transactions Bitcoin through mobile applications.

300 community banks will enable BTC trading

This was recently reported by the media American Banker, which confirmed that the start of commercial operations with Bitcoin for these banks will take place sometime in 2022 thanks to an alliance with nydig, the company of products and services based on the main digital currency, which has been working together with the Association of American Banks and the Bankers of the Independent Community of America to give them access to BTC.

According to reports, the measure originally announced in mid-2021 and which is about to materialize sometime this year, comes into place amid the great demand from customers to access cryptocurrencies through their trusted banks, in instead of doing so through the use of commercial platforms and/or services operated by third parties. This was confirmed by the CEO of BankSouth, Harold Reynolds, who commented the following:

“We have seen significant activity in transactions associated with cryptocurrencies from our client accounts, and some investments have been quite large, so we are obviously interested.”

Instead of having to deal with regulatory requirements related to owning cryptocurrency for their clients, financial institutions that choose to make the service available will rely on cryptocurrency custody services. NYDIG.

Banks are advancing in this matter

However, beyond this alliance, certain US banking entities have been making progress in this area in recent months.

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One of them is Vastbank, banking entity that in August 2021 launched its new service called “Crypto Banking”, to which the CEO of the entity, Brad Scrivner, referred as follows:

We take this challenge head-on and dedicate significant resources to respond to this unmet need. We are excited to bring this service online and give all consumers the opportunity to explore the world of crypto in a way that provides the peace of mind that only a bank like Vast can provide.“.

On the other hand is Flushing Financial Corporation, entity associated with Flushing Bank, which issued a press release last week announcing a new deal with NYDIG to enable Bitcoin buying/selling among its users:

“As part of our ongoing digital transformation, we recognize the importance of keeping up with 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 provides our customers with a fully integrated solution to transact bitcoin in a safe and secure environment.”

Regulatory landscape

While banks seem to want to address the existing demand among customers, the regulatory landscape still shows no signs of heading in the most appropriate direction for the crypto ecosystem.

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Recently published reports revealed that the administration of President Joe Biden has plans to regulate cryptocurrencies at the federal level, for which it will address the issue under the category of “National security” and will summon various agencies through an executive order to work together on this matter.

For its part, the cryptocurrency market has been a bit shaken after the recent announcements of the Federal Reserve (FED), whose president Jerome Powell confirmed last week that bank interest rates will begin to rise from next March.


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Fountain: crypto globe, American Banker

Angel Di Matteo version / DailyBitcoin

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WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.

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