Coinbase Crypto exchange will use Bitpanda Technology Solutions, a business-to-business infrastructure layer provider, to connect directly into banks and fintechs.
Austrian-based cryptocurrency exchange and trading platform Bitpanda is teaming with Coinbase Crypto exchange (COIN) to connect the U.S.-listed exchange giant with banks in Europe who are looking to offer digital assets to their customers.
The just- announced partnership allows Coinbase Crypto exchange to use Bitpanda Technology Solutions – a business-to-business infrastructure layer provider – to connect directly into banks and fintechs.
Regardless of the bearish cryptocurrency winter and the damage done to the reputation of the investment class from last year’s blowups and failures, banks want in order to offer cryptocurrency to customers, reports by BitPanda COO Lukas Enzersdorfer-Konrad. This is especially true in Europe now that the Markets in Crypto-Assets (MiCA) regulatory framework has been adopted, he added.
“ Coinbase Crypto exchange has a liquidity venue with their exchange and they have the custody setup,” Enzersdorfer-Konrad stated in an interview with CoinDesk. “ On the other hand, they do not have the whole infrastructure middle layer that a partner can integrate and offer cryptocurrency traded and purchased on Coinbase Crypto exchange exchange and stored on Coinbase Crypto exchange Custody to their end customers.”
Bitpanda’s cryptocurrency connectivity is indeed in place with a number of banks, neo-banks and fintech platforms such as Austrian traditional lender Raiffeisenlandesbank, European mobile bank N26, French money application Lydia, United Kingdom fintech Plum and the Italian mobile bank Hype.
“Banks can see the data on their payment transactions and how much of their customers’ funds have been flowing out to cryptocurrency companies,” Enzersdorfer-Konrad stated. “They understand how much business they are missing out on, and likewise how much more of their customer base would do that business, if they had enough trust in the process.”
“[ Coinbase Crypto exchange is] delighted to partner with BitPanda to jointly service institutions looking to attract the market and their customers compliant, robust cryptocurrency services,” stated Guillaume Chatain, Coinbase’s head of Institutional Sales for EMEA & APAC regions, in a statement.
Stephen Alpher.
