Business payments firm NCR has partnered with institutional bitcoin solutions provider NYDIG to enable 650 U.S. banks and credit unions to potentially offer bitcoin buying services to an estimated 24 million end users, it reported. . Forbes.
“We strongly believe in the benefits of cryptocurrencies and strategic application,” said NCR President of Digital Banking Douglas Brown. Forbes. “And that’s true for our banking relationships, as demonstrated by NYDIG, and in retailers, as well as in restaurants and the like.”
The association was born out of the banks’ desire to capture the fees corresponding to bitcoin trading, as they currently see from the sidelines how customers send money from their checking and savings accounts to bitcoin exchanges.
“Many of these banks have seen that one of the biggest outflows for their depositors is moving money from the bank to exchanges like Coinbase,” said NYDIG Chairman Yan Zhao. Forbes. “And that’s part of the reason that banks are so excited to have this capability for themselves and their consumers.”
NCR’s position as a leading provider of payment and point-of-sale solutions will join NYDIG’s enterprise-grade BTC trading and custody solutions. And this partnership will reportedly have two phases.
In phase one, NYDIG’s bitcoin-centric services will allow NCR banking client users to buy, sell, and trade BTC from their regular mobile banking apps. The idea is to provide customers with an abstract interface that appears to buy bitcoins from the bank itself. But NYDIG will bridge the backend with over-the-counter desks and exchanges to run the trade and safeguard the bitcoin in cold storage wallets.
However, it is unclear whether clients would be allowed to withdraw their BTC to their own wallets. Otherwise, although NYDIG would purportedly ensure the safety of the assets in its custody, clients would be tied down with the introduction of a third-party vulnerability. Furthermore, they would not be able to enjoy the true value proposition of Bitcoin: that of autonomous, unstoppable and decentralized money.
The second phase of the partnership could take NCR deeper into the Bitcoin ecosystem. In addition to possibly venturing into custody of BTC, NCR is reportedly working with 200,000 restaurants and other retail clients to help them accept bitcoins. Furthermore, the company also plans to bring bitcoin buying services to its 800,000 ATMs in the future.
NCR, founded in 1884 as the National Cash Register, works with the financial industry by providing digital banking services, multi-vendor ATM software, and point-of-sale software to retail stores around the world.
NYDIG, on the other hand, offers bitcoin investment and technology solutions to banks, corporations, institutions, and high-net-worth individuals. Earlier this week, the bitcoin-focused firm announced a similar partnership to offer more than 18.3 million banking end-users the ability to buy, sell, and hold BTC. And in May, NYDIG announced a collaboration with FIS to bring bitcoin services to hundreds of US banks in the coming months.