Bitpanda and Coinbase have partnered to enable European banks to offer cryptos to their customers
Bitpanda, a Austria-based crypto exchange and trading platform has partnered with Coinbase to enable European banks to offer digital assets to their customers. The just-announced partnership allows Coinbase to use Bitpanda Technology Solutions – a business-to-business infrastructure layer provider – to connect directly to banks and fintech.
Coinbase will also be added as a liquidity provider for Bitpanda Technology Solutions. This is essentially Bitpanda’s ‘investing-as-a-service’ arm. In turn, the platform will start using Coinbase Prime’s custody services.
Commenting on the essence of the latest deal, BitPanda COO Lukas Enzersdorfer-Konrad said in a recent interview, “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’s crypto connectivity is already in place with several banks, neo-banks, and fintech platforms such as Austrian traditional lender Raiffeisenlandesbank, European mobile bank N26, French money app Lydia, U.K. fintech Plum, and the Italian mobile bank Hype. He added, “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.”
What is Investment-as-a-Service and how it works?
Investment-as-a-Service (IaaS) is powering unique, customizable investment products for fintech, brands, and banks.
Historically, wealth management was limited to those with extensive investment knowledge, the necessary time required to follow the markets, or the money to pay for an asset manager to do this for them; the principal barriers to entry to investing were lack of knowledge, cost, and access.
ETFs created a new investment method that made the global markets more accessible. ETFs are types of securities that normally closely track the performance of a financial index, the American S&P 500 and Eurostoxx 50 are examples. ETFs are traded on the stock exchange just like shares in a single company and hold assets such as shares, commodities, or bonds. ETFs typically have higher daily liquidity – meaning they can easily be converted to cash – and lower costs than mutual funds, making them attractive to investors.
About Bitpanda
Bitpanda GmbH is an Austrian company headquartered in Vienna. Bitpanda’s mobile app provides access to its trading platform, which provides a cryptocurrency exchange, commodities and securities trading, and ETFs. In 2021, Bitpanda achieved a valuation of over four billion US dollars, with nearly 2.7 million customers and almost 500 employees.
About Coinbase
Coinbase Global, Inc., branded Coinbase, is an American publicly traded company that operates a cryptocurrency exchange platform. Coinbase is a distributed company; all employees operate via remote work. It is the largest cryptocurrency exchange in the United States by trading volume.
