300 Small US Banks Set To Offer Bitcoin Trading in Second Quarter of 2022: Report

Hundreds of small US banks are set to offer Bitcoin (BTC) trading services during the first half of 2022 as digital assets continue to proliferate among customers.

According to a report by American Banker, an estimated 300 community banks will start offering BTC trading on their mobile apps starting in the first or second quarter of this year with the help of crypto-fintech firm NYDIG.

One of the banks participating in the program is Georgia-based BankSouth, with more than $1.3 billion in assets.

Harold Reynolds, CEO of South Bank, said,

“We’ve seen a lot of cryptocurrency trading activity from our clients’ accounts, and some investments have been quite large, and that obviously gets our attention.”

The first bank to offer BTC trading, Oklahoma-based Vast Bank, has already seen success, according to CEO Brad Scrivener. Vast Bank has partnered with crypto exchange giant Coinbase and started supporting digital assets last October. The bank currently offers 12 crypto-assets.

“The launch of massive crypto banking has gone well. In the first four months since launch, we have added nearly five times our historic retail customer base and these customers are located in all 50 states and three US territories.”

Zack Bishop of Synovus Financial, which manages $56 billion in assets and plans to launch BTC trading in its mobile app, says banks are taking digital assets more seriously.

Traditionally, Bishop says, banks lend capital based on physical assets such as trucks, farming equipment and real estate. However, he says that banks have recently begun to show interest in blockchain-based assets that show evidence of ownership.

“We believe this is the starting point for how the operating structures at the back end of the bank need to start shifting towards working on blockchain. Cryptocurrency was the first place we wanted to be.”

Bitcoin is trading at $42,288 at the time of writing, 2.5% higher than the seven-day low of $41,265.

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Disclaimer: The opinions expressed in The Daily Hodl are not investment advice. Investors should perform their due diligence before making any high-risk investments in bitcoin, cryptocurrency or digital assets. Please be aware that your transfers and transactions are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend buying or selling any cryptocurrency or digital assets, and The Daily Hodl is not an investment advisor. Please note that The Daily Hodl is involved in affiliate marketing.

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