PNC Bank Launches Bitcoin Access Powered by Coinbase

PNC Bank now enables eligible clients of its PNC Private Bank to buy, hold and sell bitcoin directly through its digital banking system.

These direct spot bitcoin trading capabilities are powered by Coinbase’s Crypto-as-a-Service (CaaS) infrastructure, the companies said in a Tuesday (Dec. 9) press release.

The capabilities mark the first offering launched as part of the partnership between PNC and Coinbase that was announced in July, according to the release.

In future phases of the rollout of this offering, PNC plans to add enhanced features and services and to expand access to more client segments, per the release.

“As client interest in digital assets continues to grow, our responsibility is to offer secure and well-designed options that fit within the broader context of their financial lives,” PNC Chairman and CEO William S. Demchak said in the release.

Brett Tejpaul, co-CEO of Coinbase Institutional, said in the release: “This collaboration demonstrates how traditional financial institutions and on chain-native companies can work together to expand access to digital assets in a safe and compliant way.”

Coinbase International focuses on expanding Coinbase’s institutional client base and introducing features and services expected by institutional investors, Tejpaul and Greg Tusar, head of institutional product at Coinbase, wrote in a January blog post.

When PNC and Coinbase announced their partnership in July, they said that in addition to allowing the bank’s clients to buy, hold and sell cryptocurrencies, PNC would add other crypto financial solutions for its clients and provide select banking services to Coinbase.

Demchak had said during the bank’s July earnings call that PNC would be adding solutions related to cryptocurrency and stablecoins.

“First off, you should expect to see from us announcements with respect to using our payment technology to help crypto companies,” Demchak said. “Now we are allowed to bank people in that business and just given our raw capabilities, you would expect that we’ll get some meaningful clients there.”

It was reported Wednesday (Dec. 3) that Coinbase CEO Brian Armstrong said his company is working with some of the biggest U.S. banks on pilot programs testing stablecoins, crypto custody and trading. Armstrong did not name the banks.

“The best banks are leaning into this as an opportunity,” Armstrong said at the New York Times DealBook Summit. “The ones who are fighting it are going to get left behind.”