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Banks In The US To Allow Customers to Buy, Sell, Hold Bitcoin Through Existing Bank Accounts

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Hundreds of banks in the U.S. will reportedly start offering access to bitcoin to their customers this year, thanks to a partnership between Fidelity National Information Services and the New York Digital Investment Group.

Hundreds of banks have enrolled to participate in the program as they see funds moving from bank accounts to crypto exchanges.

Customers of hundreds of banks in the U.S. will soon be able to buy, hold and sell bitcoin through their existing accounts, CNBC reported on Wednesday.

This will be made possible thanks to a partnership between fintech giant Fidelity National Information Services (FIS) and the New York Digital Investment Group (NYDIG), the bitcoin investment arm of $10 billion New York-based Stone Ridge Asset Management. The two firms said that the collaboration is “to enable U.S. banks to offer bitcoin in the coming months,” the publication conveyed. FIS is a vendor to banks with nearly 300 million checking accounts.

Patrick Sells, head of bank solutions at NYDIG, said that hundreds of banks are already enrolled in the program. While noting that the firm is in talks with some of the biggest banks in the country about offering the bitcoin service, he said most banks that have enrolled are smaller banks. He was quoted as saying; “What we’re doing is making it simple for everyday Americans and corporations to be able to buy bitcoin through their existing bank relationships. If I’m using my mobile application to do all of my banking, now I have the ability to buy, sell and hold bitcoin”.

Yan Zhao, president of NYDIG, explained that banks used to steer clear of bitcoin but they are now asking about providing crypto investment services because they can see their customers moving money out of their bank accounts to crypto exchanges. She opined; “This is not just the banks thinking that their clients want bitcoin, they’re saying. ‘We need to do this because we see the data.’ They’re seeing deposits going to the Coinbases and Galaxies and Krakens of the world.”

Rob Lee, head of digital banking at FIS, expects major banks like JPMorgan Chase and Bank of America to come under pressure to offer crypto investments to retail banking customers when they see hundreds of smaller banks provide the crypto service.

Some major investment banks have already begun providing wealthy clients access to bitcoin investments. Morgan Stanley announced in March that it will begin offering bitcoin funds to wealthy clients. Goldman Sachs then said that it will offer a full spectrum of bitcoin investments. JPMorgan is also reportedly looking at its own product in conjunction with NYDIG.

“Most people can’t invest in things that institutional investors get to invest in. With bitcoin available through your bank to be purchased with as little as $1, now you have an attractive asset that’s available to be owned by anyone in any amount. We think that’s huge for economic empowerment.”

FIS will handle the link to lenders while NYDIG, not banks, will take care of bitcoin custody and trade execution, the publication noted. Zhao explained that the cryptocurrency will not be FDIC-insured. Sells further shared that NYDIG plans to provide other services, including debit card rewards paid in bitcoin, and a new type of bank account that is FDIC insured, but pays interest in bitcoin.

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Bitcoin

Bitcoin Reaches Highest Level Since May as Chartists Eye $50,000

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Bitcoin - Investors King

After a volatile weekend, Bitcoin has once again surpassed $40,000, reaching its highest level in more than two weeks.

The world’s largest crypto gained as much as 4.5% Monday to $41,020, extending its rally to a second day. The coin has rallied roughly 9% since Friday. The wider Bloomberg Galaxy Crypto Index, which tracks some of the major cryptocurrencies, also advanced, adding as much as 7.7% at one point.

With Bitcoin crossing the $40,000 threshold, many chartists are looking at $42,500 as its next important level to breach. That number roughly represents its 200-day moving average and topping it could mean the coin rallies toward $50,000.

“Bitcoin is always going to be volatile and the manic run-up we had was never sustainable. The question is where do we settle? What is the new floor in Bitcoin?,” said Tom Essaye, a former Merrill Lynch trader who founded “The Sevens Report” newsletter. “In order for Bitcoin to resume that rally, I think you’re going to need to see more widespread legitimate adoption.”

Cryptocurrencies have been under pressure in recent weeks, with Bitcoin losing about 30% since mid-April, when it hit a record of almost $65,000. The recent selloff has been exacerbated by a public rebuke from Tesla Inc.’s Elon Musk, who criticized the amount of energy used by the servers underpinning the token and reneged a previous offer to allow customers to buy his cars using the cryptocurrency. Increased Chinese regulatory oversight has also soured the mood.

But prices got a boost at the start of the week after veteran hedge fund manager Paul Tudor Jones — who said last year Bitcoin could be a good hedge against inflation — re-endorsed the coin in a television interview.

“I like Bitcoin as a portfolio diversifier,” Tudor Jones of Tudor Investment Corp. said in an interview with CNBC. “Everybody asks me what should I do with my Bitcoin? The only thing I know for certain, I want 5% in gold, 5% in Bitcoin, 5% in cash, 5% in commodities.”

Meanwhile, over the weekend, Musk once again roiled the market, saying via tweet that Tesla would allow transactions in Bitcoin once it is mined with more clean energy. The mogul said he wants miners, who have come under the spotlight in recent months, to use about 50% clean energy. The Cambridge Center for Alternative Finance has estimated that 39% of crypto mining is powered by renewable sources, mainly hydroelectric.

Bitcoin’s peers, including Bitcoin Cash, Dash, and Ether also gained on Monday.

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Bitcoin

Bitcoin Mining Difficulty Drops 5% After Xinjiang’s Miner Shutdown

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An illustration photo shows a Bitcoin (virtual currency) paper wallet with QR codes and a coin

Bitcoin’s mining difficulty fell by 5.3 percent on Sunday night UTC on the back of a recent drop-off in hash rate. On-chain data shows the network’s mining difficulty dropped to 19.8 trillion, a level not seen since early January.

The mining difficulty is how the network aims to keep blocks being produced at an even rate, despite a wildly fluctuating hash rate. Every two weeks it makes the mining process easier or harder, in order to accommodate the varying hash rate.

After the previous difficulty adjustment on May 30, the network’s hash rate remained steady. But on June 9, miners in Xinjiang’s Zhundong Economic and Technology Development Zone received orders to close operations — a result of the China State Council’s high-level comment about cracking down on bitcoin trading and mining activities. Following this news, major Chinese bitcoin mining pools saw a notable plunge in hash rate by over 20 percent on average.

From the last adjustment to June 9, Bitcoin’s average block production interval was around 9.9 minutes, close to the intended 10-minute-per-block interval, data shows. But due to the hash rate plunge, the average block production interval between June 9 and 14 was extended to more than 12 minutes.

The difficulty drop may be welcome news for miners who are still online as their share of the total block subsidies over the next two weeks will increase. Meanwhile, bitcoin’s price has jumped above $39,000 again, nearing the $40,000 level.

Bitcoin’s price started to see a notable breakout also around Sunday night UTC time following Tesla founder and CEO Elon Musk’s tweet denying that he manipulated the cryptocurrency’s market movements.

“This is inaccurate,” he replied to CoinTelegraph’s tweet about an article with comments that accused him of market manipulation.

“Tesla only sold ~10% of holdings to confirm BTC could be liquidated easily without moving market. When there’s confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions,” Musk said on social media.

Bitcoin’s price increased by over $1,500 within hours after Musk’s reply, which came just a month after Musk said Tesla suspended the bitcoin payment option out of environmental concerns.

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Whale Alert: 176 Million XRP Coins Transferred

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Ripple - Investors King

Amid the current market volatility in the cryptocurrency market, there has been a significant whale movement of the 7th crypto coin by Market capitalization, Ripple (XRP).

According to the latest data published by blockchain tracking and analytics firm, Whale Alert, a leading XRP wallet transferred 176 million coins worth approximately $146 million on Saturday 12 May.

The mentioned transaction was executed at around 15:44 UTC, and it was recorded on Bithomp.com. The recent transfer of the XRP whale from an unknown wallet is one of the largest moves since the start of this month.

In the last week of May 2021, a transaction of 139 million XRP was traced to an anonymous whale address. The transaction was done from an unknown wallet after the coin surged above $1. It was also noticed that there has been a substantial increase in the activities of the network in the past few weeks.

According to Coinshares report, Ripple (XRP) has recorded an additional investment worth $7 million in the first week of June, this was the highest level of new investment since April 2021.

In May 2021, Ripple, San Francisco-based blockchain firm, announced that the company is planning to support NFTs on XRP Ledger (XRPL). In addition, the company highlighted the significant advantages of XRPL over other platforms in the growing market of NFTs.

The world’s 7th largest cryptocurrency has seen immense volatility since the start of 2021. XRP started this year at a price level of approximately $0.22 after a crash of nearly 60 percent in December 2020 due to the SEC’s lawsuit against Ripple.

In April 2021, the digital currency saw significant interest from retail and institutional investors as its price touched an all-time high of approximately $1.92. After registering the record price level, XRP price experienced a dip in May 2021 as the digital asset reached a low of $0.69 on 23 May.

As of press time XRP is trading at $0.88 with a 7.10% gain in the last 24 hours.

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