New partnership brings crypto to community banks

Fintech and regtech provider Computer Services, Inc., is partnering with bitcoin company NYDIG to offer a suite of turnkey bitcoin services to community financial institutions. 

The new platform, announced earlier this month, allows banking customers to hold, sell and buy bitcoin directly in CSI’s digital banking platform, “creating a safe and efficient way for users to manage their digital transactions,” according to the Paducah, Ky., company. 

The partnership comes as the growth of digital currencies continues: Last year, the market capitalization of all cryptocurrencies reached a record $2 trillion, and there are almost 10,000 different cryptocurrencies. In 2021, Oklahoma community financial institution Vast Bank became the first nationally-chartered, FDIC-insured bank to allow customers to buy, sell and hold cryptocurrencies through its user interface. Also last year, a survey commissioned by NYDIG revealed that more than 4-in-5 respondents would be interested in purchasing bitcoin from their bank if the service was available. More than 70 percent who already owned the digital asset would switch their primary bank to one that had Bitcoin-related services and products. 

 “Bitcoin is one of the fastest growing areas of consumer interest, and we feel strongly about giving customers the ability to safely buy, sell and invest in it,” said Gerald Reiter, president and CEO at Cold Spring, Minn.-based Granite Bank, a CSI core banking customer.

 Though community banks look forward to offering bitcoin to their customers, they also know that providing a safe environment to maintain trust is essential, said Patrick Sells, chief innovation officer at the New York City-based NYDIG. 

 “By partnering with CSI, we can help community banks meet the growing demand for bitcoin while remaining compliant and secure with a seamless customer experience through the CSI digital banking platform,” Sells added.