It’s All About Partnerships
Say what you will about digital currencies, they bring together some of the most forward-thinking, innovative companies in the world today. A case in point is cloud-based digital banking solution provider Alkami Technology which recently partnered with Idaho Central Credit Union (ICCU). The collaboration will enable the members of Idaho’s largest credit union to buy, sell, hold and otherwise get comfortable with Bitcoin (BTC) in easy-to-understand dollar terms.
NYC-based NYDIG, a technology and financial services firm dedicated exclusively to BTC, will be the provider for the digital currency trading and custody services that will occur on Alkami’s platform.
Plusses and Minuses
On the plus side, the feature throws open a door to Idaho Central Credit Union’s more than 480,000 members, many of whom might not have ever been exposed to digital currencies. Along with traditional accounts, members will be able to manage their BTC holdings within a secure, compliant, and regulated platform.
Less appealing to some customers may be the fact that NYDIG will maintain custody of the bitcoin, essentially issuing account holders an IOU for the digital currencies they purchase. Without self-custody of their bitcoins, credit union members will not get to enjoy the complete autonomy that digital currencies are prized for. They will still have to involve a third party–in this case, the credit union–to make transactions.
The Future of Finance
As a top-performing credit union in the country and leader in mobile and digital banking, ICCU’s Chief Information Officer Mark Willden is cognizant of bitcoin’s future in the financial world and his own institution’s continued high performance.
“To maintain that momentum, we want to continue offering new services as part of our digital menu and deliver additional value in support of the financial goals and investment desires of our members,” he said. Willden added, “Fully integrated bitcoin services through NYDIG and the Alkami Platform takes us to the next level when it comes to the member experience.”
Willden should stay tuned. As the new service gains ground with ICCU members, it is likely they’ll start looking for additional services which will allow them to gain self-custody of their BTC in order to enjoy the additionals financial freedom that digital currencies offer.