Bitcoin Banking for the Masses Is Here
Banking with bitcoin is easy … if you’re among the wealthiest investors.
Last month, Morgan Stanley became the first major U.S. bank to let clients invest in bitcoin. Its private bitcoin fund raised $29.4 million in its first two weeks.
But here’s the catch: Morgan Stanley’s fund is only available to investors with a net worth of $2 million or more.
Megabanks JPMorgan Chase and Goldman Sachs have similar funds in the works, but those will also be aimed at the ultrarich.
So, if you’re an everyday investor, your options for buying, selling and holding bitcoin are still limited to platforms such as Coinbase and PayPal.
However, one major fintech company is changing that in a big way…
A New Way to Manage Your Bitcoin
Fidelity National Information Services Inc. (NYSE: FIS), a $94 billion company based in Jacksonville, Florida, wants to transform your bank account.
Earlier this week, FIS announced that it’s teaming up with New York-based NYDIG to provide bitcoin trading services to banks across the U.S.
FIS’ fintech platform offers a “seamless, easy-to-use digital experience” for managing bitcoin holdings in your bank account, while NYDIG handles bitcoin custody and executes trades.
“If I’m using my mobile application to do all of my banking, now I have the ability to buy, sell and hold bitcoin,” says Patrick Sells, NYDIG’s head of banking solutions.
According to Sells, hundreds of banks have already signed up to use the platform, but most of them are smaller, local institutions. FIS and NYDIG are currently in discussions with major U.S. banks to expand access to bitcoin banking.
And that could be the catalyst that sends bitcoin’s price soaring to all-time highs…
The Next Big Step for Cryptos?
Coinbase, PayPal and other platforms already give investors a way to buy and sell bitcoin and other cryptocurrencies. But these services can charge transaction fees as high as 4.5%.
FIS’ platform allows banks to compete in this space by offering lower fees. In addition, it’s a convenient way for investors to manage their bitcoin at the banks they already do business with.
This development could lead to a flood of new investors in the crypto space as buying and selling bitcoin becomes as simple as depositing and withdrawing cash in your bank account.
And that surge in demand could help push bitcoin’s price even higher.
There are plenty of other reasons why bitcoin and other cryptos will continue to move higher, though. Ian King talks about them in his special presentation.
You can watch it now by clicking here.
Assistant Managing Editor, Banyan Hill Publishing