US banks to allow Bitcoin trading in 2021, says NYDIG execs

As per the report published by CNBC on Wednesday, New York Digital Investment Group collaborated with fintech staple Fidelity National Information Services, also known as FIS, to provide a framework for United States banks to offer crypto trading services to their customers.

US banks to allow Bitcoin trading in 2021, says NYDIG execs

The bank solutions chief at NYDIG, Patrick Sells told CNBC that some of the banks have already signed up for the program, from which most of them being smaller financial institutions. Sells also added that the company is in talks with major U.S. banks to participate in the program.

According to the NYDIG executive, major banks including Bank of America and JPMorgan may be incentivized to come on board after smaller banks begin to reap the rewards of retail crypto trading adoption. BoA is one of the anti-crypto banks in the country, regularly disputing the value proposition of Bitcoin and other cryptocurrencies.

As part of the collaboration between NYDIG and FIS, all the banks which are participating will be allowed to offer direct crypto trading for their customers straight from their existing accounts.

Banks giving green signals to crypto could see U.S. lenders facing competition from the platforms like Robinhood, Coinbase and Square, among others.

The president of NYDIG, Yan Zhao said that the huge revenue figures reported by the likes of Robinhood and Coinbase was impressive for U.S. banks to set their sights on retail crypto trading:

“This is not just the banks thinking that their clients want bitcoin, they're saying 'We need to do this, because we see the data.' They're seeing deposits going to the Coinbases and Galaxies and Krakens of the world.”

Retail crypto trading offered by U.S. lenders will also constitute a 180-degree reversal on the consensus among financial institutions from the country which are in the cryptocurrency space.