Bitcoin custody firm NYDIG has appointed John Dalby as its new CFO. Dalby spent almost three years at the world’s largest hedge fund, Bridgewater Associates. Commenting on his new role, he said:
“The growth of NYDIG has been incredible. Every day, more industries come to understand Bitcoin’s potential and more clients seek ways to safely access it. Personally, I share NYDIG’s vision for Bitcoin’s ability to propel economic empowerment for all. I eagerly look forward to doing my part to help NYDIG deliver innovative Bitcoin solutions to institutions and individuals.”
NYDIG believes the route to Bitcoin adoption is through existing legacy banking infrastructure. The firm is working towards implementing an institutional solution that will allow U.S. banks to offer their customers crypto trading.
Bitcoin Banking Services On The Way
In partnership with Fidelity National Information Services, NYDIG is pushing Bitcoin services for banks. Under this scheme, bank customers will soon be able to buy, hold and sell Bitcoin via their existing bank accounts.
According to NYDIG, the response has seen hundreds of smaller banks come on board. However, discussions with some of the bigger banks are still ongoing at this time. Patrick Sells, Head of Bank Solutions at NYDIG, said this setup makes crypto easy for everyday people.
“What we’re doing is making it simple for everyday Americans and corporations to be able to buy bitcoin through their existing bank relationships. If I’m using my mobile application to do all of my banking, now I have the ability to buy, sell and hold bitcoin.”
Business Insider points out that less well-resourced banks struggle to compete in the new digital marketplace. The publication drew attention to the rising popularity of challenger banks and financial service providers, such as Revolut and Venmo.
By signing up with NYDIG and offering Bitcoin trading services to its customers, U.S. retail banks can better compete with challenger organizations, which already hold a significant overhead advantage by being branchless.
NYDIG Research Shows Most Don’t Care About Crypto Being Permissionless
NYDIG published a survey they conducted earlier this year that reveals customers are more interested in Bitcoin products from their bank than ever before.
“The increasingly widespread adoption of Bitcoin, with little involvement from banks, has caught many by surprise. Some banks may wonder if consumers simply don’t want to intermingle the two. However, our consumer research points to a vastly different conclusion.”
Interestingly, the survey results show that 80% of existing Bitcoin investors would move their holdings to a bank with secure crypto storage. Also, 71% would switch to a bank that provided Bitcoin services.
Although self custody and direct trading on crypto exchanges is the preferred method for retail crypto enthusiasts, many overlook the fact that some people want an intermediary.
The reasons for this are many, including access to customer service, the perceived complexity of cryptocurrency, and shared responsibility for scam/fraud protection.
Source: BTCUSD on TradingView.com