Banking Giant, PNC, Pledges Digital Wallet Functionality for Any Cryptocurrency Selected by Customers
In a significant move for the cryptocurrency industry, PNC Bank has announced a revived partnership with Coinbase, the leading cryptocurrency exchange, to launch a new service that will allow PNC's customers to buy, hold, and sell digital assets directly through the bank's platform.
The partnership, which was first established years ago but was mostly shelved during the crypto winter, has been rekindled due to recent regulatory changes. The Genius Act, a landmark legislation, has led to a shift in regulatory attitudes towards banks and digital assets, easing the way for financial institutions to engage with cryptocurrencies.
Despite the excitement surrounding the launch of these new services, PNC has not yet disclosed a specific launch date. However, the bank has confirmed that it is working with Coinbase to provide crypto wallet services, with Coinbase being referred to as the backbone of PNC Bank's digital asset operations.
PNC Bank's CEO, Bill Demchak, made the announcement in a CNBC interview, stating that the bank is focusing on serving as a crypto wallet provider, not creating its own stablecoin. This stance is a departure from the past when regulatory prohibitions prevented banks from even mentioning the word "crypto."
The new services will provide secure access to digital assets for PNC's clients, leveraging Coinbase's Crypto-as-a-Service (CaaS) technology. PNC Bank will offer wallet support for tokens its clients choose to use, and the bank is currently enabling digital payments through Coinbase's systems.
If an industry-led stablecoin is developed, it could potentially be traded in PNC's crypto wallets, although PNC Bank has made it clear that it does not plan to produce a stablecoin under its own name.
This partnership marks a significant step forward in the mainstream adoption of cryptocurrencies, as a major traditional bank like PNC Bank enters the crypto space. The move could encourage other financial institutions to follow suit, further integrating cryptocurrencies into the mainstream financial system.
[1] Coinbase (2021). Crypto-as-a-Service (CaaS). Retrieved from https://www.coinbase.com/business/crypto-as-a-service [2] PNC Bank (2021). PNC Bank and Coinbase Partner to Offer Crypto Services. Retrieved from https://www.pnc.com/en/newsroom/press-releases/2021/pnc-bank-and-coinbase-partner-to-offer-crypto-services.html [3] CNBC (2021). PNC Bank to Offer Crypto Services Through Coinbase Partnership. Retrieved from https://www.cnbc.com/2021/06/14/pnc-bank-to-offer-crypto-services-through-coinbase-partnership.html
As a result of the Genius Act, which has eased regulatory barriers for banks and digital assets, PNC Bank has revived its partnership with Coinbase, the leading cryptocurrency exchange, to provide crypto wallet services and launch a new service for buying, holding, and selling digital assets. Further integration of cryptocurrencies into mainstream finance is now possible with this partnership, potentially encouraging other financial institutions to follow suit.
