FIS has announced an industry-first solution that enables banks to offer their customers the ability to buy, sell, and hold bitcoin via their bank accounts.
Currently, consumers and corporations must establish new accounts, often with unregulated entities, and go outside of their traditional banking relationships to acquire bitcoin. The new solution taps into the advanced functionality of the FIS Digital One Mobile solution to allow banks to provide bitcoin services via a seamless, easy-to-use digital experience – enabling them to drive fee income and better attract and retain customers.
The secure custodial and trading platform for managing the bitcoin transactions will be provided by bitcoin-focused financial services and technology provider NYDIG under a recently signed agreement with FIS. In late 2020, FIS and NYDIG partnered with Quontic Bank to enable the New York-based digital bank to be the first FDIC-insured financial institution in the US to go live with a Bitcoin Rewards debit card.
In addition to the commercial agreement, FIS Ventures, the venture arm of FIS, made an investment in NYDIG for an undisclosed amount.
“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,” said Rob Lee, head of Global Core Banking and Channels, FIS. “Unlocking these capabilities for financial institutions of all sizes levels the playing field for banking with bitcoin and can drive further innovation.”
Once a financial institution enables this solution, their customers will be able to view and manage bitcoin holdings alongside their traditional accounts in a single view.
“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,” said Robert Gutmann, co-founder and CEO of NYDIG. “Working with an innovative leader like FIS on this integration will usher in a new age of financial freedom, choice, and trust for consumers with their existing banks. We welcome FIS as an investor and we are deeply excited about how our partnership can elevate banks across the country.”