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Enterprise payment giant NCR has partnered with NYDIG to allow 650 banks to offer Bitcoin purchases to a total of about 24 million customers. With this partnership, these financial institutions won't have to deal with burdensome regulatory requirements by relying on NYDIG’s custody services, which is holding $4 billion in crypto assets, including at least 30k BTC bitcoins owned by its parent company, Stone Ridge. NCR president of digital banking, Douglas Brown said,
“We're firm believers in the benefits of crypto and the strategic application, and that's true for our banking relationships.”Founded in 1884, the Atlanta-based National Cash Register (NCR) generated $6.2 billion in revenue from non-crypto transactions last year. NCR is also the largest provider of point of sale (POS) software to grocery and other retail stores globally, having captured a 45% market share. NCR aims to capitalize on demand from “dozens” of banks and credit unions complaining that their customers were moving money (savings) outside to buy cryptos, and now they want to allow their customers to buy, sell, and hold their BTC within their existing accounts. Yan Zhao, co-founder of Stone Ridge said,
“A lot of these banks have seen that one of the biggest outflows from their depositors is moving money from the bank to exchanges like Coinbase.” “And so that's part of why banks are so excited to have this capability for themselves and for their consumers.”60% of crypto owners would use their bank to invest in crypto, according to a December 2020 survey. However, only about 2% of banks were interested in offering such services, which has since changed after the giants like JPMorgan, Citi, Goldman Sachs, Morgan Stanley, and BNY Mellon actively started adopting Bitcoin and crypto. While it starts with letting customers buy, sell and trade bitcoin and other cryptocurrencies from their mobile application, Brown expects banks to follow PayPal, which saw a 100% increase in the rate its crypto customers visited the app, which increased the payment giant’s ability to sell them other products. Brown said,
“Banking today is a daily or a couple of times a day activity for people, which is what we typically see.” ‘Crypto gets to an hourly or sub-hourly level of deepening engagement.”NYDIG itself has a “broader ambition” and wants to do a multitude of things with crypto that extends into multi-vertical markets, retailers and restaurants, and around digital banking, Brown said. Meanwhile, the firm’s banking infrastructure partnerships are estimated to let them offer bitcoin services to about 70% of US banks.