NYDIG and NCR Will Bring Crypto Purchase Facility to 650 U.S. Banks, Germany’s New Law Can Boost Institutional Money Flow In Crypto

On Wednesday, June 30, American payments giant NCR joined hands with digital asset management firm NYDIG facilitating 650 US banks and credit unions to offer Bitcoin purchase options to their clients. 

This is a massive development considering that it will straight away offer Bitcoin access to 24 million customers registered with the banking institutions. Speaking of the recent development, NCR president of digital banking Douglas Brown said "We're firm believers in the benefits of crypto and the strategic application, And that's true for our banking relationships, as evidenced by Nydig, and across retailers as well as restaurants and the like."

NCR will make facilitate crypto purchases to its clients through mobile-friendly app. Besides, NCR doesn’t need to go through regulatory challenges as digital asset management firm NYDIG will take care of the crypto custodial services.

This deal empowers clients to directly purchase and spend Crypto from their banks without the need for third-party exchange. The latest step from NCR pitches direct competition to the existing market players and crypto exchanges.

Yan Zhao who joined NYDIG as president in December 2020 said “And so that’s part of why banks are so excited to have this capability for themselves and for their consumers.”

The NYDIG took this decision with the growing requirement for crypto assets from clients. Banks and credit unions have been tired of dealing with third-party crypto exchanges to make their crypto purchases. Thus, understanding their customer pains, NCR made a smart move of getting into the game.

The phase one implementation of this project will involve NCR offering its banking clients the ability to buy, sell and trade cryptocurrencies directly from its native mobile app. On the front-end, the customers get a feel that they are directly buying crypto from the back. On the back end, NYDG will take care of the custody of their crypto assets. NYDIG will adopt the ‘per-user per-month fee’ model which will make transactions considerably cheaper.

On the other hand, a new law in Germany could see $415 billion inflow in crypto assets as it comes into effect later today. Germany's Fund Location Act, introduced back in April 2021, allows Spezialfonds, or special funds, to invest 20% of their portfolio capital into crypto. If all such funds were to gain this crypto exposure, it could potential mean a net inflow of $415 billion in the crypto market.

This could probably trigger further a flood of institutional money coming to the crypto market.