Financial technology firm FIS (Fidelity National Information Services) announced its partnership today with NYDIG (New York Digital Investment Group) to enable Bitcoin access for banks in the U.S.
The partnership would open an industry-first solution for FIS’ core banking clientele, giving them the ability to buy, sell, and hold Bitcoin. The announcement also details that FIS will be introducing its Digital One™ Mobile app to provide a seamless interface for its consumer market to connect with Bitcoin trading services.
“As demand for Bitcoin as a store of value continues to grow, FIS is focused on enabling our core banking clients to respond to growing market demand and better serve their customers,” shared FIS’ Global Core Banking and Channels head Rob Lee. “Unlocking these capabilities for financial institutions of all sizes levels the playing field for banking with Bitcoin and can drive further innovation,” Lee added.
FIS is a Fortune 500 company and is a member of the Standard & Poor’s 500 Index. FIS currently handles some $9 trillion worth of transactions annually, with over 75 billion transactions done on average. FIS is currently the largest processing and payments company in the world, and this move to accepting Bitcoin, the alpha cryptocurrency, will likely result in mass adoption for the crypto industry at large.
NYDIG’s role in the partnership entails providing a secure and regulated custodial service for the Bitcoin transactions. NYDIG is the Bitcoin-focused financial technology subsidiary of Stone Ridge, a $10 billion alternative asset manager. NYDIG currently has over $6 billion assets under custody, providing Bitcoin technology and investment solutions for a range of institutional clients and high net worth individuals.
“While Bitcoin adoption is increasing, an accessibility and credibility gap remains for too many who want to buy, sell and hold. Our partnership with FIS, and their core banking clients, bridges this gap,” shared NYDIG CEO and co-founder Robert Gutmann.
The two firms have previously partnered with Quontic Bank, a digital bank, to offer an industry-first Bitcoin Rewards debit card, and become the first FDIC (Federal Deposit Insurance Corporation) insured financial institution in the U.S to do so.
“With Bitcoin available through your bank to be purchased with as little as $1, now you have an attractive asset that’s available to be owned by anyone in any amount. We think that’s huge for economic empowerment.” stated Yan Zhao, president of NYDIG.
Through NYDIG’s flagship fund franchise, FIS’ opening of Bitcoin access to its customers is set to offer the industry’s lowest total expense ratio for Bitcoin access through a fund manager, a rate that’s currently at 0.30% of any transaction, which is between 50-75% lower than other passive Bitcoin access products available both to investors and average consumers.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.