📈 69% of S&P 500 stocks beating the index - a historic record! Pick the best ones with AI.See top stocks

Deutsche Bank ties up with Bitpanda in 'cautious' crypto shift

Published 06/04/2024, 02:05 AM
Updated 06/04/2024, 10:50 AM
© Reuters. FILE PHOTO: The logo of Deutsche Bank is seen on the roof of a building outside a Deutsche Bank branch office in Malaga, Spain, April 24, 2024. REUTERS/Jon Nazca/ file photo
DBKGn
-
SBNY
-
SICPQ
-

(Corrects to show Bitpanda is a broker (not an exchange), in paragraphs 1 and 12)

By Elizabeth Howcroft

AMSTERDAM (Reuters) - Deutsche Bank will work with Bitpanda to process customer deposits and withdrawals for the Austrian crypto broker, the companies told Reuters.

The crypto industry has previously struggled to find banking partners, particularly after the 2023 collapse of Silvergate Capital (OTC:SICP) Corp, Signature Bank (OTC:SBNY) and Silicon Valley Bank, which had a high concentration of crypto-related clients.

But in the latest sign of the crypto world moving closer to mainstream finance, Deutsche will provide Bitpanda users in Germany with local bank account numbers.

This means that deposits or withdrawals of fiat currencies from Bitpanda will go through Germany's largest bank. Some banks do not allow customers to transfer funds to crypto exchanges.

Vienna-based Bitpanda, which was founded in 2014, says it has more than 4 million users and offers products including fractional stocks, cryptocurrencies and precious metals.

Regulators have raised concerns about crypto market upheaval spilling into mainstream finance as ties between the two deepen, although analysts say connectivity between them remains limited.

Deutsche's global head of cash management Ole Matthiessen said it has taken a "very cautious" approach.

"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," Matthiessen said in emailed comments.

Deutsche does not get involved in the transfer of any crypto through the Bitpanda agreement but instead helps clients transferring in and out of their portfolio while supporting Bitpanda's treasury and payment processes, Matthiessen said.

Kilian Thalhammer, global head of merchant solutions at Deutsche, said it wanted to be "the bank of choice for the high-potential platforms" in the world of virtual asset investing.

A Deutsche spokesperson said that the bank has a similar partnership with Hong Kong-based crypto exchange Hashkey, but that Bitpanda is the first such client in its Europe, Middle East and Africa region.

© Reuters. FILE PHOTO: The logo of Deutsche Bank is seen on the roof of a building outside a Deutsche Bank branch office in Malaga, Spain, April 24, 2024. REUTERS/Jon Nazca/ file photo

Bitpanda is already a corporate client of Deutsche's in Austria and Spain but these are not customer-facing, a spokesperson for the broker said.

(This story has been corrected to show that Bitpanda is a broker, not an exchange, in paragraphs 1 and 12)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.