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Bitpanda and Deutsche Bank join forces in cautious crypto expansion

Regulators are monitoring the increasing link between crypto and traditional finance and are worried about potential disruptions

Shashank Bhardwaj
Published: Jun 5, 2024 04:44:08 PM IST
Updated: Jun 5, 2024 04:48:14 PM IST

Bitpanda and Deutsche Bank join forces in cautious crypto expansionImage: Shutterstock

Deutsche Bank's recent collaboration with Bitpanda is a significant development for the crypto industry. This partnership enables the Austrian crypto broker to streamline customer deposits and withdrawals, a crucial step forward for the industry. The crypto sector has been grappling with the aftermath of the doom of financial institutions in 2023, making it challenging to secure banking partnerships. However, this alliance with Deutsche Bank paves the way for a more secure financial ecosystem.

In a significant move towards greater integration, Deutsche Bank will now provide Bitpanda users in Germany with local bank account numbers. Using German IBANs will also enable Bitpanda's customers to make and receive crypto payments directly from their bank accounts, reducing friction and increasing adoption.

This means that deposits and withdrawals of fiat currencies from Bitpanda will be processed through Germany's largest bank, making it easier for users to manage their funds. This partnership marks a step towards greater mainstream acceptance of crypto, as some banks previously restricted transfers to crypto exchanges.

Bitpanda, a Vienna-based fintech company founded in 2014, has grown significantly, with over 4 million users. The platform provides various products, including fractional stocks, crypto assets, and precious metals. Despite regulators' concerns about the potential impact of crypto market volatility on mainstream finance, analysts note that the connection between the two sectors remains relatively limited.

According to Deutsche Bank's global head of cash management, Ole Matthiessen, the bank has taken a very cautious approach in its partnership with Bitpanda. Matthiessen emphasised that Deutsche only works with very selective partners and clients who demonstrate strong compliance processes, operate in a regulated environment, and meet the bank's heightened risk expectations. Matthiessen clarified that Deutsche does not participate in the transfer of any crypto assets through the agreement; instead, it focuses on supporting clients' portfolio management and Bitpanda's treasury and payment processes.

Deutsche Bank's global head of merchant solutions, Kilian Thalhammer, expressed the bank's desire to become the go-to financial partner for high-potential platforms in the virtual asset investing space.
A Deutsche spokesperson noted that the bank has a similar partnership with Hong Kong-based Hashkey, but Bitpanda marks the first such client in its Europe, Middle East, and Africa region.
Additionally, Bitpanda is already a corporate client of Deutsche in Austria and Spain, although these relationships are not customer-facing.

Shashank is the founder of yMedia. He ventured into crypto in 2013 and is an ETH maximalist.
Twitter: @bhardwajshash