Bakkt Inks a Deal With American Bank to Offer Crypto Services
American bank has inked an deal with Bakkt to bring cryptos closer to its customers. The deal entails allowing customers to trade crypto assets on Bakkt through the bank’s financial systems. The partnership will enable the bank’s customers to trade Bitcoin and Ethereum at first.
American Bank and Bakkt Forge a Partnership
Bakkt and American Bank have joined hands to bring crypto-assets closer to their clients. The American Bank clients will now have access to financial services to trade Bitcoin and Ethereum on Bakkt.
“Consumer saving and investing habits ebb and flow constantly, but we’re seeing consumer intrigue and interest in cryptocurrency grow,” said Sheela Zemlin, Chief Revenue Officer, Bakkt. “Research1 has indicated that consumers would prefer to access crypto from their existing bank. We’re excited American Bank is partnering with Bakkt to provide customers a simple on-ramp to cryptocurrency within their trusted bank relationship. American Bank shares our view that banks have a short window measured in months or quarters to execute on their crypto strategies or risk being left behind.”
The service is expected to go live in Q2 of 2022. It is not the first time that Bakkt has inked such a deal. It has dealt with other banks before. Previously, it inked a similar deal with community-focused banks like Hanover Bank and Variance Bank. Last December, it also announced a similar partnership with Jersey-based Manasquan Bank.
More on the Story
American Bank is a community-based bank headquartered in Allen town, Pennsylvania. It has joined the ever-growing roster of financial institutions acting as bridges between traditional finance and cryptocurrencies. It believes in an innovative economy, so it has decided to partner with Bakkt for crypto services.
“As one of the pioneers in online banking innovation and, as the longest operating ‘online bank’ in the country, we are always looking for ways to enhance our customers’ banking experience,” said Mark Jaindl, President and CEO at American Bank
Bakkt is a crypto trading platform launched by Intercontinental Exchange in 2018. It focuses on Institutional products and custody. Lately, Bakkt has also been focusing on offering its retail-driven app. It merged with a special purpose acquisition company last October, allowing it to trade as a public company. Since then, it has inked several deals with financial institutions to facilitate crypto trading services.
Global Crypto Adoption Increases
Even though the crypto market is still dipping, crypto holders are increasing with the current owners taking their coins off the exchanges. Governments have been working on regulating the crypto space, with Institutional investors taking advantage of the new guidelines.
As a result, individuals have followed these entities and increased their activities. Currently, about 96K BTC are moving from exchanges to storage wallets each month per Glassnode report; the moving of assets from exchanges shows an increasing tendency to hold the assets.
Even though there are signals that investors are gaining confidence in the market, it is best to DYOR before investing since it can lead to huge losses.