Customers of American Bank, a locally owned community bank headquartered in Allentown, Pennsylvania, may now have access to cryptocurrencies Bitcoin and Ethereum via the new crypto trading offering provided by the bank.
The Lehigh Valley-focused bank dating back over 25 years would utilize the Bakkt crypto-connect solution to enable its banking customers to buy, sell and hold the two largest cryptocurrencies by market capitalization: Bitcoin and Ethereum. The Bakkt crypto-connect solution is anticipated to launch in Q2, 2022.
American Bank intends to use Bakkt's teaching materials to provide cost-effective access to cryptocurrencies as more customers become interested in buying cryptocurrency through their bank.
''Research has indicated that consumers would prefer to access crypto from their existing bank, and we're excited American Bank is partnering with Bakkt to provide customers a simple on-ramp to cryptocurrency within their trusted bank relationship,'' stated Sheela Zemlin, chief revenue officer of Bakkt in a released statement.
U.S. banks are engaging in cryptocurrency
In 2021, a host of prominent U.S. banks began offering wealth management clients exposure to crypto, with Morgan Stanley leading the charge. Morgan Stanley said in March that clients with at least $2 million in assets at the bank would be able to access three Bitcoin funds. JPMorgan Chase & Co, Wells Fargo & Co and Citigroup are among the other banks that offer crypto exposure to their wealth management clients.
Back in February 2021, Bank of New York Mellon stated that it would hold, transfer and issue Bitcoin for asset management customers, making it one of the first large Wall Street banks to do so. In October, U.S. Bancorp launched Bitcoin custody services. NYDIG, a Bitcoin company, works as a sub-custodian for the bank, and its services are aimed at institutional investors with private funds.
As previously covered by U.Today, Texas-based Laredo Vantage Bank announces plans to offer a new way for their employees to have a Bitcoin savings plan with the company in a bid to step away from traditional savings plans.