- Crypto exchange Bitpanda, based in Austria, is partnering with Coinbase to provide a connection between the U.S.-listed exchange and European banks interested in offering digital assets to their clientele.
- The partnership will allow Coinbase to utilize Bitpanda Technology Solutions, an infrastructure provider that enables direct connections to banks and fintechs. Bitpanda already has crypto connectivity with numerous banks and fintech platforms.
Bitpanda and Coinbase: A Strategic Partnership
Bitpanda, an Austrian crypto exchange and trading platform, is embarking on a significant collaboration with Coinbase, aiming to link the U.S. exchange titan with European banks wishing to offer digital assets to their customers. This newly announced alliance permits Coinbase to utilize Bitpanda Technology Solutions, a business-to-business infrastructure layer provider, allowing for direct interfacing with banks and fintech firms.
Despite the bearish crypto winter and the ensuing reputational damage from last year’s upsets and failures, banks are still eager to offer crypto to their customers, according to BitPanda’s COO, Lukas Enzersdorfer-Konrad. This is particularly relevant in Europe, where the Markets in Crypto-Assets (MiCA) regulatory framework has been accepted.
The Benefit of Infrastructure Middle Layer
“Coinbase has a liquidity venue with their exchange and they have the custody setup,”
Enzersdorfer-Konrad pointed out in an interview with CoinDesk. However, he identified a gap:
“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 has already established crypto connectivity with a range of banks, neo-banks, and fintech platforms, including Raiffeisenlandesbank, N26, Lydia, Plum, and Hype. Enzersdorfer-Konrad explained that banks are becoming increasingly aware of their customers’ interest in crypto:
“Banks can see the data on their payment transactions and how much of their customers’ funds have been flowing out to crypto companies. 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.”
The partnership was enthusiastically received by Coinbase’s head of Institutional Sales for EMEA & APAC regions, Guillaume Chatain, who stated that they are
“delighted to partner with BitPanda to jointly service institutions looking to bring the market and their customers compliant, robust crypto services.”