On Tuesday December 12, Manasquan Bank whose headquarters is based in New Jersey, announced that it selected Bakkt cryptocurrency firm to provide the bank’s retail clients access to cryptocurrency.
Manasquan Bank, a mutual community bank, which has a total consolidated asset of $2.7 billion, will participate in Bakkt’s early adopter program to allow the bank’s retail clients to purchase, sell and hold cryptocurrencies through the bank’s model app. In addition, Bakkt expects to launch its early adopter program in the second quarter of 2022.
Manasquan Bank has gained interest by participating in the rapidly growing crypto space. As result, the bank plans to make cryptocurrency access simple and friendly within the digital banking environment which its customers know and trust. Bakkt’s modern digital asset platform allows banks to plug and play a cryptocurrency purchase/sell/hold module, which offers users a seamless platform and quick access to multiple digital assets. Further, Bakkt is known for providing safe and secure custody of digital assets for sophisticated institutional clients.
Sheela Zemlin, the Chief Revenue Officer of Bakkt, talked about the development: “This is an incredible opportunity to provide Manasquan Bank clients with an entry point to adopt cryptocurrency as an additional asset option. It’s clear that cryptocurrency is the center of the Web3 economy, in which consumers can participate in new value creation and exchange with digital assets. Bakkt is proud to roll out new and innovative ways to this burgeoning economy, enabling a path to buy, sell and hold crypto as an extension of the consumer’s relationship with their trusted local bank.”
Meanwhile, James Vaccaro, Chair, President and Chief Executive Officer of Manasquan Bank, commented about the partnership: “We’re focused on driving growth and introducing new opportunities for our clients to participate in the digital economy. Our developing partnership with Bakkt to introduce these new offerings and features comes at an exciting time when consumers continue to seek out crypto assets as an option for the acquisition of a portfolio of cryptocurrencies even if it is in very small increments to start, and without having to leave their existing trusted banking environment.”
Based on the announcement, Bakkt shares surged over 4% on early Tuesday. However, it is still below the recent highs when Mastercard partnered with Bakkt in October. The news prompted the company’s share price to touch $50 per share before reversing its movement. Moreover, Bakkt stock currently trades around the $9.30 mark.
Bitcoin Entering Community Banks
The development by Manasquan Bank partnering with Bakkt comes at a time when US community banks are getting into Bitcoin services as crypto increasingly becomes mainstream. In October, the banking software vendor, Finastra collaborated with Bakkt to make cryptocurrency more accessible to customers of community banks and credit unions. Finastra, a software technology vendor to small banks and credit unions, is working to lower the barrier to entry for small institutions. Besides that, in late October, Mastercard partnered with Bakkt to make crypto options available to merchants and banks across its payment network. Millions of merchants and thousands of banks on Mastercard’s global payment network would be able to integrate cryptocurrency into their products. That includes Bitcoin wallets, debit and credit cards that earn rewards in crypto and enable crypto coins to be spent, and loyalty programs where hotel or airline points can be converted into Bitcoin. The announcement could lead to a significant expansion in ways consumers earn and spend cryptocurrencies. Furthermore, Mastercard runs major global payment networks along with Visa and has relationships with over 20,000 financial institutions across the globe.
