Customers of the Pennsylvania-based institution will now be able to buy, sell and hold BTC and ETH from the online banking app.
American Banka Pennsylvania-based community bank, is joining the list of financial institutions in the United States making the leap into digital currencies.
According to a Press release this wednesday, American Bank has signed an agreement with the digital asset platform Bakkt with the aim of offering bank customers a cryptocurrency trading service.
The agreement will allow clients of American Bank buy, sell, ship and hold the top two cryptocurrencies by market cap: Bitcoin (BTC) and ethereum (ETH). The new service is expected to go live in the second quarter of 2022.
The president and CEO of the bank, Mark Jaindl said the initiative is part of the company’s commitment to innovation since its inception in 1997. “As one of the pioneers in online banking innovation, […] we are always looking for ways to improve the banking experience for our customers“, he said in the statement.
In accordance with Jaindl, the movement will convert American Bank on “the first Lehigh Valley-based bank to offer access to cryptocurrency trading.”
Another US bank dipping into crypto
The news comes at a crucial moment of intersection between traditional financial institutions and the digital asset space. from titans of wall street What Goldman Sachs and Morgan Stanleyto smaller banks in the country, an increasing number of banking institutions have been actively exploring cryptocurrencies.
The Director of Revenue BakktSheela Zemlin, mentioned this trend, highlighting that it is largely due to a change in the “consumer saving and investment habitss” who are increasingly interested in cryptocurrencies. Zemlin cited a recent study by Cornerstone Advisors which revealed that 42% of Americans surveyed would use their bank to invest in crypto.
The investigation has indicated that consumers would prefer to access crypto from their existing bank, and we are excited that American Bank is partnering with Bakkt to provide customers with a simple on-ramp to crypto within their trusted banking relationship.
The representative also assured that the banks have ashort window“of time to develop your cryptocurrency strategies”or risk being left behind“.
as you pointed out The Block, Bakkt has announced such deals with several other regional and community-focused banks in recent weeks, including Variance Bank and Hanover Bank. The cryptocurrency-focused firm too announced a similar partnership with Manasquan Bankbased in New Jersey, last year, and an agreement with master card to bring assets into your payment network.
Article by Hannah Estefanía Pérez / DailyBitcoin
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.