FIS and NYDIG roll out mobile banking for Bitcoin via traditional bank accounts

Technology solutions provider FIS is set to roll out a mobile banking solution that enables banks to give their customers the ability to buy, sell and hold Bitcoin within their traditional bank accounts. FIS Digital One is a user-friendly interface that connects consumers seamlessly in-app with Bitcoin trading. Under a recently signed agreement with the Florida-based FIS, New York Digital Investment Group (NYDIG), a provider of technology solutions for Bitcoin, will provide the secure custodial and trading platform for managing the Bitcoin transactions. Individuals and corporations currently use separate accounts or go to other banks to acquire and sell the cryptocurrency, according to a statement from FIS. [caption id="attachment_218441" align="alignright" width="300"] Image by Pixabay[/caption] In an email, Rob Lee, head of digital banking at FIS, told Bank Automation News there are no restrictions on the type of bank that can use the FIS Digital One solution, but the “initial launch focus is on FIS core clients.” The solution can be used by many types of financial institutions, including both community and regional banks, and other large financial institutions. “Our initial focus is on enabling buy/sell of Bitcoin via our [Digital One] mobile solution. We are exploring additional use cases beyond that past our initial launch, inclusive of interest credit as [Bitcoin], additional buy/sell use cases, rewards, among other scenarios,” said Lee. New York-based Quontic Bank will use a custom iteration of the FIS Digital One solution to debut its digital and mobile app with Bitcoin rewards tracking, reporting and functionality in the second quarter of 2021. FIS is the bank’s core solutions provider. The move is the “next step” in the $1.4 billion bank’s relationship with FIS, Grace Pace, vice president and digital engineer at Quontic, told BAN . When Quontic Bank debuted its Bitcoin rewards debit card in December 2020, it turned to FIS for the solution, making it the first FDIC-insured financial institution in the U.S. to go live with the feature. “As a bank, we didn't want to necessarily be the custodian of the Bitcoin, but we wanted to reward our customers that were interested in crypto,” said Pace. “Quontic did surveys, over the past few years, and saw that more than 20% of the respondents had a willingness to move their checking account to a bank that would pay bitcoin rewards.” NYDIG’s set of APIs allows Quontic customers to hold Bitcoin in a simultaneous wallet at the institution, and the company is making moves to ensure the cryptocurrency becomes a more mainstream asset in the banking and investment world. Co-founder and CEO Robert Gutmann said the partnership fills a need for customers. “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,” Gutmann said in release. NYDIG is the Bitcoin subsidiary of Stone Ridge, a $10 billion alternative asset manager, and last week the company announced the appointment of Chief Financial officer John Dalby, who previously served as CFO at Bridgewater Associates, the world's largest hedge fund. The company has raised more than $405 million in seven funding rounds, according to Crunchbase; licensure currently allows virtual currency activity in 28 states.

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FIS and NYDIG roll out mobile banking for Bitcoin via traditional bank accounts

Interface allows seamless in-app cryptocurrency trading

BBVA account pivot for Simple customers locks accounts

IBM launches new cloud, AI services in bid to modernize business

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