Published
3 weeks ago on
June 04, 2024
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Deutsche Bank has announced a partnership with Bitpanda to facilitate seamless customer deposits and withdrawals for the Austrian crypto exchange.
Generally, crypto exchanges and crypto-related businesses have had a tough time securing traditional banking partners, especially after the collapse of several crypto-focused banks.
Deutsche Bank, Bitpanda Partnership
The partnership signals a changing attitude and growing acceptance of crypto and its move into mainstream finance. Deutsche Bank will provide Bitpanda users in Germany with local bank account numbers. The partnership will allow Bitpanda users in Germany to deposit and withdraw traditional currencies via Deutsche Bank, a significant move since some banks restrict currency transfers to crypto exchanges. Instead, this partnership will see deposits and withdrawals of fiat from Bitpanda routed through Germany’s largest bank.
Bitpanda was founded in 2014 and has over 4 million users, with the platform offering an array of products such as stocks, cryptocurrencies, and precious metals. Deutsche Bank already provides banking services for Bitpanda’s operations in Austria and Spain, allowing the exchange and its users to manage transactions in different currencies. Despite crypto slowly becoming mainstream finance, regulators have flagged concerns about crypto market upheaval and volatility spilling into mainstream finance. Speaking about the partnership, Deputy CEO of Bitpanda, Lukas Enzersdorfer-Konrad, stated,
“Bringing the best parts of the industry together is where we can create real value for people. Deutsche Bank’s commitment to working with new and innovative players in the financial industry continues to make our partnership possible. From today, we can access a range of Deutsche Bank’s products, unlocking benefits for our team and our users.”
A Cautious Approach
Deutsche Bank’s global head of cash management, Ole Matthiessen, stated that the bank has taken an extremely cautious approach and only works with selective partners who demonstrate strong compliance processes and operate in a regulated environment.
“We only work with very selective partners and clients who demonstrate strong compliance processes, operate in a regulated environment, and meet our heightened expectations from a risk perspective.”
Deutsche Bank’s Global Head of Merchant Solutions, Kilian Thalhammer, stated that the bank wanted to be the option of choice for high-potential platforms like Bitpanda.
“We are always looking to partner with companies who share our commitment to user safety and security. With Bitpanda, a recognised and regulated fintech provider, we are confident to help build a secure and trusted environment for users in this innovative field of virtual asset investing. With our strategy to be the bank of choice for the high-potential platforms, the partnership with Bitpanda represents a key milestone as we shape this emerging ecosystem through active engagement with leading industry players.”
Ramping Up Crypto Involvement
Banks in Germany are increasing their involvement in crypto as traditional finance and the crypto ecosystem come closer together. Last Month, one of Germany’s leading federal banks, Landesbank Baden-Württemberg (LBBW), announced a collaboration with Bitpanda to provide cryptocurrency custody services. The service is expected to launch later this year. Deutsche Bank also collaborated with Swiss crypto infrastructure company Taurus to establish crypto custody services.
Deutsche Bank has been increasing its involvement with crypto over the past few years. In 2023, the bank applied for a digital asset custody license from Germany’s financial watchdog. The move was part of the bank’s efforts to provide its customers with access to crypto markets and digital assets.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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