The roll out of this service is an outcome of increased demand from banks and credit unions, according to NCR, an Atlanta-based payment company. Instead of using third-party exchanges to buy cryptocurrency, these companies want something that could be done in-house and is frictionless.
“We’re fairly confident in the merits of crypto and the tactical implementation,” NCR president of digital banking Douglas Brown said of the move. That stands true for our banking partnerships, as shown by NYDIG, and also for shops, restaurants, and other businesses.”
Banking and credit union clients will be able to acquire bitcoin/crypto straight via their existing accounts using NCR’s service. This places the payments behemoth in direct rivalry with current cryptocurrency exchanges. Custodial solutions for crypto purchases, on the contrary, will be handled by NCR’s partner NYDIG. NYDIG President Yan Zhao said in a statement to Forbes:
“A number of these institutions have noticed that transferring money from the bank to exchanges like Coinbase is among the greatest withdrawals from their depositors. As a result, banks are ecstatic to have this capacity for both themselves and their customers.”
As previously said, NCR will make buying, selling, and trading Bitcoin and other cryptocurrencies through their mobile application completely trouble free and smooth. Clients will get the impression that they are dealing straight with banks through their registered accounts as a result of the transaction. NYDIG will be the custodian of the real assets at the back end.
Besides, NCR clients also don’t need to worry about the custody of the private keys that give customers access to cryptocurrencies. NYDIG said it will hold the exact amount of assets that its clients buy in a cold-wallet environment. “Every dollar of customer Bitcoin is actually Bitcoin that is held in custody, in trust, for the customers,” says Zhao. Moreover, with the existing system, all Bitcoin and crypto purchases are sourced from OTC desks. Thus, the purchaser buys the crypto at a marked-up price depending on trade size and other factors. However, NYDIG will sort this out with a per-month-per-user fee from the bank.
According to the digital asset management business, this will significantly lower transaction fees in the cryptocurrency market. “I believe you’ll see less transaction costs via the banks than what you have now in the marketplace, stated Patrick Sells, NYDIG’s head of bank solutions. The banks, on the other hand, get to choose what that transaction charge will be.”
According to NCR’s digital banking president Douglas Brown, the payment behemoth would eventually take control of its customers in stage two of the deployment. NCR’s main objective is to make crypto spending and use more accessible to the general public.
Brown explains, “We have a wider desire to do a variety of activities with crypto that will transcend into our multivertical marketplaces, shops, and restaurants. After that, there are further options centered on digital banking.”