Crypto Asset Manager NYDIG Hires Tech-Savvy Banker to Pitch Its Wares to Institutions

Former Quontic Bank executive Patrick Sells will be responsible for developing NYDIG’s white-labeled crypto services for banks.

AccessTimeIconDec 9, 2020 at 8:35 p.m. UTC
Updated Sep 14, 2021 at 10:41 a.m. UTC

Patrick Sells is going from banking cryptocurrency businesses shunned by most financial institutions to pitching crypto-related services to banks that may suddenly be warming to the sector.

Sells, the former chief innovation officer of New York-based Quontic Bank, is joining New York Digital Investments Group (NYDIG) as its head of bank solutions, the company announced Wednesday.

Sells will be responsible for developing NYDIG’s custody, execution, financing and anti-money laundering and know-your-customer compliance services for banks through a white-labeled offering.

In other words, if banks want to offer crypto trading and custody to their customers, NYDIG stands ready to do all the work for them behind the scenes. And such banks might be out there, judging from the public comment letters filed by a handful of U.S. institutions over the summer in response to a national regulator’s request for input. 

One of only 26 companies to receive New York State’s rarefied BitLicense, NYDIG is best known for managing multi-million-dollar crypto funds and offers prime brokerage and custody services to institutional clients. It raised $150 million for twin crypto funds earlier this month. It is a unit of Stone Ridge, an alternative asset manager handling $10 billion for clients.

Quontic is a tiny bank with only $1.4 billion in assets, about 0.044% the size of JPMorgan. Sells and his former boss, Quontic CEO Steven Schnall, provided hard-to-come-by bank accounts to cryptocurrency firms and gave Quontic employees a crypto education by handing out $20 in bitcoin to each staff member.

Sells won American Banker magazine’s Digital Banker of the Year award in 2020, and revealed that he was working with Schnall on a deposit product tied to crypto.  

While the crypto industry has historically been served by only a handful of banks, several new banking options are on the horizon, from new chartered Wyoming-based community banks designed to handle digital assets to crypto payments firm BitPay filing to become a national U.S. bank.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
Bank of England Committee Calls for Enhanced Crypto Regulation to Limit Contagion

The loss $2 trillion of crypto market cap over a period of months has “underscored the need for enhanced regulation,” the Bank of England’s Financial Policy Committee said.

CoinDesk - Unknown
2
CoinDesk - Unknown
Nexo Signs Term Sheet With Vauld for Potential Acquisition

Nexo said it has a 60-day exclusive due diligence period in which to decide if it will acquire up to 100% of Singapore-based Vauld.

CoinDesk - Unknown
3
CoinDesk - Unknown
UK Government Seeks Views on DeFi Taxation

Those wishing to submit evidence have until Aug. 31 to do so.

CoinDesk - Unknown
4
CoinDesk - Unknown
Former JPMorgan Banker Samir Shah Becomes COO at Pantera Capital

Shah joins Pantera after 12 years at JPMorgan spanning roles in sales, strategy and digital.

CoinDesk - Unknown