- NYDIG and Q2 Holdings, which specialize in Bitcoin, are launching the Q2 Digital Banking Platform for US banks and credit unions and offering Bitcoin to their customers.
- The Q2 Digital Banking Platform aims to integrate at least 450 banks by the beginning of 2022.
Austin-based digital bank Q2 Holdings and bitcoin specialist NYDIG launched the Q2 digital banking platform to help U.S. banks and credit unions offer Bitcoin trading services to their customers.
The new platform will integrate NYDIG’s digital banking platform into Q2’s platform using Q2’s Innovation Studio.
Five Star Bank and UNIFY Financial Credit Union are the first US financial institutions to offer Bitcoin services through the Q2 Digital Banking Platform.
It will start four months after the partnership was announced by Q2 on the occasion of the opening of the Innovation Studio on June 9, 2021.
NYDIG and Q2 will work together to offer an integrated Bitcoin offering for financial institutions directly within the Q2 online banking platform.
New York-based Five Star is a $ 5 billion community bank with roughly 50 branches, while UNIFY is a California-based credit union that has multiple branches and is valued at $ 3 billion.
Q2 digital banking platform
The new platform aims to help financial institutions overcome barriers to processing cryptocurrencies, such as the operation of wallets and key management. For this purpose, the user interface of the Q2 Digital Banking Platform contains several tabs with helpful information about Bitcoin and blockchain technology.
Participating banks’ customers can buy, hold and sell Bitcoin through their desktop or mobile banking applications. Jonathan Price, executive vice president of Q2, said the company had signaled “very high interest” in Bitcoin from its robust customer pipeline. As a result, Q2 has already won several customers for the early adopter phase, with another wave expected by the end of 2021.
Patrick Sells, NYDIG’s chief innovation officer, said the company is focused on helping banks and credit unions capitalize on the growing market momentum surrounding Bitcoin. Both partners hope to have at least 450 banks on board by early 2022, Price said.
“We know the opportunities for financial institutions are real.”
Banks are responding to the high demand for Bitcoin
According to the NYDIG study, more than 20% of adults in the US own bitcoin, with more than 80% of this group being willing to hold bitcoin at their house bank if that were possible.
The NYDIG study goes on to say that evolving market and consumer trends have resulted in a growing number of consumers looking for easy and secure ways to store Bitcoin in trusted vaults.
New York-based NYDIG, a subsidiary of Stone Ridge Asset Management, is known for its plans to expand Bitcoin’s reach through numerous partnerships with other companies.
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NYDIG recently partnered with Virginia-based MVB Bank and Victor Technologies to integrate Bitcoin with the bank’s Banking-as-a-Service (BaaS) solutions.
Additionally, NYDIG has partnered with the National Cash Register (NCR) to help U.S. banks offer Bitcoin to their customers. In May, NYDIG announced that Bitcoin would soon be available to hundreds of banks in the United States. The company made that statement when it partnered with Fidelity National Information Services to allow U.S. banks to offer Bitcoin starting in 2021.