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Q2 and NYDIG launch Bitcoin trading Platform for Banks and Credit Unions

  • Bitcoin focused firm NYDIG and Q2 Holdings launch Q2 Digital Banking Platform for US banks and Credit Unions to offer Bitcoin to their customers.
  • Q2 Digital Banking Platform aspires to onboard at least 450 banks by early 2022.

Austin-based digital bank Q2 Holdings and Bitcoin-focused company NYDIG have launched the Q2 Digital Banking Platform to help US banks and credit unions provide Bitcoin (BTC) trading services to their customers.

The new platform will integrate NYDIG’s digital banking platform into Q2’s platform, leveraging the latter’s Innovation Studio.

Five Star Bank and UNIFY Financial Credit Union have become the first US financial institutions to offer bitcoin services via the Q2 Digital Banking Platform.

The launch comes four months after Q2 announced the partnership during the launch of the Innovation Studio on June 9th 2021.

NYDIG and Q2 will be collaborating to offer an Integrated Bitcoin offering for financial institutions directly inside the Q2 Online Banking Platform.

New York-based Five Star is a $5 billion community bank with around 50 branches while UNIFY is a credit union based in California with several branches and a $3 billion valuation.

Q2 Digital Banking Platform

According to a statement, the new platform will help financial institutions overcome crypto processing barriers such as wallets and key management. Additionally, the Q2 Digital Banking Platform’s interface includes several tabs with helpful information about bitcoin and blockchain technology. 

Customers from onboarding banks will be able to buy, sell or hold BTC on their desktop or mobile banking applications. Jonathan Price, Q2’s executive vice president, said the firm has received “very high” interest for Bitcoin from its robust pipeline of customers. As a result, Q2 has several customers already lined up for its early adopter phase, with an additional wave expected to deploy by the end of 2021.

Patrick Sells, chief innovation officer at NYDIG said that the company is laser-focused on helping banks and credit unions take advantage of the building market momentum around BTC. Both partners hope to onboard at least 450 banks by early 2022, according to Price. 

We know that the opportunity for financial institutions is real.

Banks are responding to high customer demand for Bitcoin

According to NYDIG research, over 20 percent of adults in the US hold BTC, with over 80 percent in this group indicating receptivity to hold Bitcoin in their go-to banks if the option was available.

NYDIG added that evolving market and consumer trends have given rise to an increasing number of consumers who are looking for easy and secure options for storing BTC with trustworthy sources.

New York-based NYDIG and subsidiary of Stone Ridge Asset Management firm, is well known for its Bitcoin reach expansion agenda through multiple partnerships with other firms.

Related: 15 banks in India join to process Letters of Credit using blockchain

Recently, NYDIG partnered with Virginia-based MVB Bank, and Victor Technologies to integrate Bitcoin into the bank’s Banking as a service (BaaS) solutions.

Additionally, NYDIG joined forces with the National Cash Register (NCR) to help US banks offer bitcoin to their clients.  In May, NYDIG said Bitcoin would soon be available to hundreds of banks in the US. The firm made the statement while launching a partnership with Fidelity National Information Services to enable US banks to start offering Bitcoin in 2021.

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