One of the Largest Banks in the US Announces Its Move into Cryptocurrency

PNC Bank, one of America’s leading financial institutions, is preparing to offer cryptocurrency buying, selling and custody services to its customers by collaborating with cryptocurrency exchange Coinbase.

In a joint statement on Tuesday, it was stated that PNC will build its own crypto transaction infrastructure using Coinbase’s enterprise “crypto-as-a-service” (CaaS) platform.

The Pittsburgh-based bank will allow its customers to buy, sell, and securely store Bitcoin and other digital assets. PNC will also provide certain banking services to Coinbase, further enhancing their mutual partnership.

This strategic partnership between PNC and Coinbase is seen as a significant shift in the traditional banking sector’s historical distance from cryptocurrencies. Cryptocurrency companies have previously accused the banking sector of being “hostile” towards them.

Earlier this year, allegations surfaced in Congressional hearings that banks were deliberately avoiding providing services to certain sectors. While lawmakers from both parties agreed on this, differing views were expressed on the root cause of the problem. The banking industry, however, denied these accusations, arguing that outdated and complex regulations were the reason for their inability to provide service.

The announcement of the PNC-Coinbase partnership comes as US President Donald Trump’s cryptocurrency-friendly policies are gaining traction. Last week, Trump signed legislation establishing a dedicated regulatory framework for stablecoins, a long-awaited step in the industry. Other major banks, including Bank of America and Citibank, have also announced plans to launch their own stablecoins.

“Our partnership with Coinbase allows us to deliver innovative crypto financial solutions to our customers faster,” PNC CEO William Demchak said in a statement. “Through this partnership, we will be able to meet the growing demand for secure and easy access to digital assets on PNC’s trusted platform.”

*This is not investment advice.