Coinbase will connect directly to banks and fintechs by using Bitpanda Technology Solutions, a business-to-business infrastructure layer provider.
Bitpanda, an exchange and trading platform for cryptocurrencies based in Austria, is working with Coinbase (COIN) to connect the U.S.-based exchange giant with European banks that want to offer digital assets to their users.
The newly announced partnership allows Coinbase to use Bitpanda Technology Solutions, a business-to-business infrastructure layer provider, to link directly to banks and fintechs.
Lukas Enzersdorfer-Konrad, the COO of BitPanda, says that banks want to be able to offer crypto to customers, even though the crypto winter has been bad and the blowups and failures of last year have hurt the asset class’s image. He added that this is especially true in Europe after the approval of the Markets in Crypto-Assets (MiCA) regulatory system.
In an interview with CoinDesk, Enzersdorfer-Konrad said, “Coinbase has a liquidity venue with their exchange and they have the custody setup, but they don’t have the whole infrastructure middle layer that a partner can integrate and offer crypto traded and bought on Coinbase exchange and stored on Coinbase Custody to their end customers.”
Bitpanda already has crypto connections with a number of banks, neo-banks, and fintech platforms, such as the Austrian traditional lender Raiffeisenlandesbank, the European mobile bank N26, the French money app Lydia, the U.K. 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 crypto companies,” Enzersdorfer-Konrad said. “They understand how much business they are missing out on, and also how much more of their customer base would do that business, if they had enough trust in the process.”
In a statement, Guillaume Chatain, Coinbase’s head of Institutional Sales for the EMEA and APAC regions, said, “Coinbase is delighted to partner with BitPanda to jointly service institutions looking to bring the market and their customers compliant, robust crypto services.”