According to media reports, Deutsche Bank will cooperate with Bitpanda to process customer deposits and withdrawals from clients of the Austrian crypto broker.
The mentioned information was published by journalists with reference to representatives of the mentioned companies. It is worth noting that for many years the crypto industry has faced significant difficulties in trying to form partnerships with banks. Many financial institutions refused and some lenders continue to refuse such cooperation due to distrust of the digital currency and, in general, not the best perception of the virtual money sector in terms of transparency and legality. It is worth noting that the corresponding belief, which to a certain extent is a prejudice, is also widespread outside the financial industry. After the collapse of Silvergate Capital Corp, Signature Bank, and Silicon Valley Bank last year, the formation of partnerships between banks and the crypto company became even more complicated. In this case, the negative impact factor was that in financial institutions that crossed the line beyond which their continued existence became impossible, there was a high level of concentration of crypto-related clients. However, gradually the situation began to change.
The collaboration between Deutsche Bank and Bitpanda has a certain symbolic meaning, which lies in the fact that the world of cryptocurrencies is gradually approaching becoming mainstream finance. The financial institution will provide the clients of the crypto broker in Germany with local bank account numbers. The implementation of this solution in a practical plane means that deposits or withdrawals of Bitpanda fiat currencies will be carried out through one of the largest banks in Europe. It is worth mentioning that some lenders prohibit their clients from transferring funds to crypto exchanges.
Bitpanda, headquartered in Vienna, was founded in 2014. The company claims that its user base currently numbers more than 4 million people. Bitpanda offers cryptocurrencies, fractional stocks, and precious metals to consumers.
Concerns are spreading among regulators that the turmoil taking place in the crypto market concerns the main financial flows. In the context of these concerns, it is noted that the corresponding correlation is the result of a deepening interaction between the traditional financial environment and the digital currency sector. At the same time, many analysts note that banks’ cooperation with crypto companies is limited.
Deutsche Bank’s global head of cash management Ole Matthiessen, in comments provided to the media, stated that the financial institution adheres to a very cautious approach in its interaction with other companies and organizations. In this context, it was noted that the lender cooperates with selected partners and clients who demonstrate strict compliance processes, operate in a regulated environment, and meet heightened expectations in terms of risks.
Ole Matthiessen stated that Deutsche Bank is not involved in the transfer of any cryptocurrency through the Bitpanda agreement. The financial institution helps clients make transfers in and out of their portfolio by supporting the treasury and payment processes of the mentioned crypto company.
Kilian Thalhammer, global head of merchant solutions at Deutsche Bank, stated that a financial institution wants to become a lender of choice for the high-potential platforms in the world of investing in virtual assets. It is worth noting that this bank is also a partner of the Hong Kong Hashkey crypto exchange. At the same time, Bitpanda is Deutsche Bank’s first such client in Europe, the Middle East, and Africa region. The mentioned crypto company in the status of a corporate client is already interacting with the specified lender in Austria and Spain.
As we have reported earlier, Deutsche Bank to File Liquidation Suit Against Chinese Developer Shimao.
