Housing Bill Provision Paves Way for Cheaper Bank-Fintech Partnerships

A provision in the recently passed housing package has some experts speculating that fintech and crypto firms may benefit from bank-fintech partnerships becoming cheaper.

The provision, which is expected to be signed into law by President Donald Trump, includes a custodial deposit bill that could make such partnerships more cost-effective for banks and fintech companies alike.

'It seems when it comes to community banks, the biggest usage of custodial deposits, or at least the most profitable usage, as far as we can see, would be banks and tech partnerships,' said Phillip Basil, director of economic growth and financial stability at Better Markets.