Banking Capital markets News

NYDIG partners with FIS to offer bitcoin via hundreds of banks

FIS

FIS, the company that provides technology solutions to banks and owns payment provider WorldPay, has partnered with NYDIG, the crypto asset management and digital custody company. Together they aim to enable hundreds of smaller U.S. banks to offer their account holders access to Bitcoin, the only digital currency with which NYDIG works. The idea is that many people wouldn’t be willing to open an account or wallet with a specialist cryptocurrency exchange. But if they can access it from a banking app, they’d be more comfortable.

The partners previously worked together late last year to enable the New York-based digital Quontic digital bank to offer a Bitcoin rewards debit card.

Access to cryptocurrency will be through the FIS Digital One Mobile solution. Additionally, FIS Ventures made an investment in NYDIG. In March NYDIG, a subsidiary of Stone Ridge, announced a $200 million funding round that included investors such as Morgan Stanley, New York Life, MassMutual, Soros Fund Management, and FS Investments. Morgan Stanley also said it would offer access to cryptocurrencies to its wealth clients through NYDIG and Galaxy Digital asset management.

“As demand for bitcoin as a store of value continues to grow, FIS is focused on enabling our core banking clients to respond to growing market demand and better serve their customers,” said Rob Lee, head of Global Core Banking and Channels, FIS. “Unlocking these capabilities for financial institutions of all sizes levels the playing field for banking with bitcoin and can drive further innovation.”

Meanwhile, FIS has been involved in a variety of blockchain activities in recent years. It’s on the governing councils of Hedera Hashgraph and Korea’s Klaytn networks (Worldpay in the case of Klaytn), and it’s a partner in Visa’s B2B Connect blockchain high value payments solution. Plus, it works with Billon, the Polish / UK bitcoin startup with an e-money license.