Traditional financial institution users can now buy, sell, and hold bitcoin (BTC) through a solution developed by digital asset company New York Digital Investment Group (NYDIG) and Q2 Holding, a leading banking software developer.
According to an announcement, following the integration of NYDIG’s software into Q2’s digital banking platform, traditional financial institutions can offer Bitcoin services to their clients, while eliminating the problems of wallet and key management.
The NYDIG Bitcoin solution will allow bank customers to view their BTC balance from their traditional banking accounts.
Per the announcement, Five Star Bank and Unify Credit Union have been onboarded as the first financial institutions in the United States to use the service.
Describing the initiative as a game-changer for traditional financial institutions in the U.S., Jonathan Price, Q2’s Vice President of Emerging Businesses, Corporate & Business Development, said:
“This new Q2-NYDIG offering gives financial institutions the choice to offer Bitcoin to their end-users while taking into account the regulatory and security requirements needed to enable banks and credit unions to securely step into the bitcoin arena and meet growing consumer demand.”
Commenting on the development, Patrick Sells, NYDIG’s Chief Innovation Officer, noted that there is a growing interest in the largest virtual currency. He noted that integrating NYDIG Bitcoin services into Q2’s digital banking platform will help banks and credit union’ customers take advantage of the current market rally.
“Our partnership with Q2 is simply groundbreaking for Bitcoin + Banking, and together we will work towards creating a more prosperous financial future for consumers,” Sells added.
According to a survey conducted by NYDIG in May, more than 46 million American citizens, representing 22% of the nation’s adult population, own the digital asset.
Of the total respondents who declared they have bitcoins, 80% indicated that they would prefer to store the asset class in a bank provided there are stronger security systems in place.
On the other hand, 71% of them noted that they would not hesitate to change their existing bank for another that offers Bitcoin-related services.
With more people indicating they will change their primary banks for another that offers bitcoin services alongside conventional banking, traditional financial institutions are seeking ways to join the Bitcoin bandwagon to retain their customers.
This year alone, traditional financial firms such as BNY Mellon and U.S. Bank, among others, are among the top institutions in the United States that have announced Bitcoin offerings.
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