CSI, NYDIG Want to Bring Bitcoin to Community Banks

The FinTech and RegTech solutions provider Computer Services Inc. has joined forces with the bitcoin company NYDIG to offer bitcoin services to community financial institutions.

“Powered by NYDIG, the new offering allows banking customers to buy, sell, and hold bitcoin directly within CSI’s digital banking platform, creating a safe and efficient way for users to manage their digital transactions,” the companies said in a news release Thursday (Jan. 6).

The firms cite a survey commissioned last year by NYDIG that found that 81% of respondents would be interested in buying bitcoin from the bank if the service was offered. Another 71% who already owned the digital currency said they’d switch banks to one that offered bitcoin-related services.

“Bitcoin is one of the fastest growing areas of consumer interest, and we feel strongly about giving customers the ability to safely buy, sell and invest in it,” said Gerald Reiter, president and CEO at Granite Bank, a CSI core banking customer.

Patrick Sells, NYDIG’s chief innovation officer, said that while community banks are excited about offering bitcoin, they also know they need a secure, compliant platform to keep the trust of their customers.

“By partnering with CSI, we can help community banks meet the growing demand for bitcoin while remaining compliant and secure with a seamless customer experience through the CSI digital banking platform,” Sells said.

CSI says this new offering joins other tools such as mobile banking, digital account opening, web design and hosting and digital payments.

Read more: Computer Services Inc. Sets Up Loan Platform for Financial Institutions

Last year, the Kentucky-based company launched CSI Loan Marketplace, a platform that lets financial institutions buy, sell and participate in a range of loan transaction types, rebalance their portfolios in line with investment strategies and expand their geographic footprint.

Learn more: SEC Delays Ruling on NYDIG’s Spot Bitcoin ETF Proposal

The news comes two days after the U.S. Securities and Exchange Commission said it would delay ruling on NYDIG’s proposal for a new bitcoin exchange-traded fund (ETF). The SEC said it wants 60 days to consider the rule change. However, the agency has rejected several of these funds recently, and Chairman Gary Gensler has said he’d prefer seeing a bitcoin futures ETF rather than one holding bitcoin directly.