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Jack Henry and Associates has partnered with NYDIG to enable its 7 million bank users access to bitcoin.
Jack Henry will use its existing SaaS platform to enable payments to and from NYDIG.
This service offers a new revenue stream for banking institutions and credit unions.
Fintech software company Jack Henry & Associates, Inc. (Nasdaq: JKHY) has announced a partnership with bitcoin bank, NYDIG to enable seven million banked customers access to bitcoin, in a press release sent to Bitcoin Magazine.
Many institutions and individuals are holding out on their banks offering bitcoin services due to the fears of overcoming new technology. Business and consumer account holders will be able to utilize NYDIG’s buy-hold-sell capabilities through the Banno Digital Platform serviced by Jack Henry.
The platform will facilitate payments to and from NYDIG over Jack Henry’s network which includes both community and commercial banking institutions reaching over 7.1 million users.
“Jack Henry is a key access point to community financial institutions and Main Street America. Together, we are bridging access to broader financial tools for Jack Henry customers,“ said Rahm McDaniel, head of banking solutions at NYDIG. “This relationship marks an important step toward making bitcoin services more obtainable for both financial institutions and their account holders.”
While this service offers a great deal of accessibility to millions of users, Jack Henry also notes this will be a boon to the banking institutions and credit unions themselves. Services offering allocation to bitcoin create a new and interesting form of revenue that is not reliant on interest payments, such as fractionalized investment opportunities. This enables legacy banking infrastructure to participate in the growing economy of today’s consumers.
“It’s important for financial institutions to be at the center of financial transactions, and our work with NYDIG is a great example of how we can collaborate to make this a reality,” said Julie Morlan, senior managing director of digital solutions at Jack Henry. “Our relationship with NYDIG helps more banks and credit unions meet today’s modern payment demands.”