Fintech firm Movencorp has announced a partnership with digital assets manager NYDIG to help digital banks launch Bitcoin products.
Moven will be leveraging NYDIG’s best-in-class platform to offer Bitcoin products and services, giving the beneficiaries the ability to hold, sell, and buy Bitcoin.
The collaboration is seen as the first in the industry, and it’s further proof that Moven is a leader when it comes to providing banks with financial wealth technology in the U.S. The partnership also gives Moven the chance to add several Bitcoin-related products to the existing “bank-in-the-box” services. This will enable banks to foster significant revenue improvement and gain wallet share.
NYDIG’s superior digital asset platform will power the project by offering secure reporting, execution, and custody services that meet the highest governance, audit, and regulatory standards.
The partnership comes after U.S. banks were allowed to offer crypto custody and carry out crypto payments and other crypto-related transactions using stablecoins.
Moven Founder Brett King commented on the development. “If PayPal and Square can do it, then community banks should be able to do it, too,” he stated, adding that “being able to offer it on our platform for U.S. banks, it’s the right time frankly.”
NYDIG has been very active lately
The NYDIG partnership will be the second of such partnerships in the U.S., after partnering with Q2, a banking tech provider, last year. NYDIG was set up after a $10 billion Stone Asset Management in 2017. Afterward, it raised $50 million in funds to pursue its expansionary ambition.
Last week, the firm announced that it had purchased Digital Assets Data to aid its crypto analytics offerings and crypto research. Last month, Patrick Sells was appointed, who, at the time, was working with Manhattan-based Quontic Bank, to work as head of their banking solutions.
The chief executive officer of Moven, Kesh Talwar, also commented on the partnership, saying there has been impressive growth for both cryptocurrencies and the fintech platform. However, both worlds had never joined forces.
Consumers share a cordial relationship with the financial services companies, which is why they trust them. He added that the partnership would bring the opportunity to everyone in a “streamlined fashion.” Patrick Sells added that NYDIG is fortunate to be partnering with a firm like Moven. Brett King and Kesh have been consistent in accurately predicting industry trends.
Banks can become top players in the industry
Based on NYDIG’s research, more than 80 percent of U.S. citizens who are Bitcoin holders prefer holding their Bitcoin with their own banks if they offered secure storage. The research also revealed that 85 percent of them would also prefer transacting with their banks.
The rise of fintech has made many banks feel they are behind trends in peer to peer payments, but King says banks have the chance of capitalizing on their customers’ loyalty. Since customers would prefer dealing with them than other institutions, King says banks have the opportunity to become strong players in the crypto industry. He added that Moven is designed to make sure that goal is achievable and sustainable.
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