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In response to increased demand from clients, an estimated 300 community banks in the United States are poised to begin offering Bitcoin trading via mobile apps. According to an American Banker story, over 300 community banks in the United States are planning to offer Bitcoin trading to their customers in the first or second quarter of 2022, with the help of Bitcoin business NYDIG. The American Bankers Association and the Independent Community Bankers of America are said to have invested in NYDIG as part of the campaign, according to the report. According to the company's website, NYDIG is 'a subsidiary of Stone Ridge, a holding company that has led the formation of forward-thinking enterprises spanning the worlds of technology and finance, including a $12 billion+ alternative asset manager.' It provides 'Bitcoin products in a wide range of industries, including banking and insurance, as well as technology and charitable organizations.' According to Harold Reynolds, CEO of BankSouth, a Georgia-based financial institution with over $1.3 billion in assets:
“We have seen significant activity in cryptocurrency transactions from our customer accounts, and a few investments have been rather large, so that is obviously getting our attention.“
Vast Bank was First-Ever National Bank to Purchase and Provide Custody Services for a Digital Asset
Vast Bank, based in Oklahoma, reported on 4 February 2021 that it 'successfully executed' an 'end-to-end cryptocurrency transaction' on 27 January 2021, becoming 'the first nationally chartered financial institution to both purchase and provide custody services for a digital asset on behalf of a customer and directly from their bank account,' thanks to a partnership with Coinbase. Then, on August 25, 2021, Vast Bank, which describes itself as 'a reputable family-owned financial institution serving customers since 1982,' announced the 'launch of its new Crypto Banking service.' Vast Bank CEO Brad Scrivner said back then:
“We take pride in getting to know our customers, and that starts with listening. At the heart of many of these conversations is crypto. For quite some time, our customers have been asking why they cannot securely purchase the likes of Bitcoin using their bank account, citing concerns over trustworthiness, safety, and the security of other platforms—all issues which have kept many consumers parked on the sidelines of the crypto phenomenon. “We took this challenge head-on and devoted significant resources to answer this unmet need. We’re excited to bring this service online, and give all consumers the opportunity to explore the world of cryptocurrencies in a way that brings peace of mind that only a bank like Vast can provide.“
Many More Followed The Lead
Customers will be able to acquire several cryptocurrencies, including Bitcoin, Bitcoin Cash, Cardano (Ada), Ethereum (Ether), Litecoin, Orchid, and Algorand, using the Vast Bank Crypto Banking application, according to the August 2021 press release. Flushing Financial Corporation, the corporate holding company for Flushing Bank, said on January 25 that it had reached an arrangement with NYDIG to provide Bitcoin services to its customers. And Patrick Sells, chief innovation officer at NYDIG, stated:
“On behalf of NYDIG, I’m excited to welcome Flushing Bank and its customers to the bitcoin network,” said Patrick Sells, chief innovation officer at NYDIG. “Consumer interest in bitcoin is growing rapidly and NYDIG has the tools and expertise to help community banks meet that demand. Together with forward-thinking institutions like Flushing Bank, we’re on the path to achieving our mission of bitcoin for all.”