Banks want to offer Bitcoin trading in order to stanch the flow of their customers’ funds to crypto exchanges such as Coinbase, NYDIG President Yan Zhao told CNBC.
The Bitcoin trading partnerships will help to level the playing field between small incumbent banks and challengers and introduce a new revenue source for participating banks.
The retail banks’ upcoming offering gives them the opportunity to retain customers by pitching the convenience of keeping deposits and trading under one roof, potentially helping limit the outward flow of deposits to challengers or crypto exchanges.