Coinbase partners with Bitpanda to offer institutional clients access to European markets
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(Kitco News) - Coinbase is making good on its pledge to expand its international operations as the top U.S.-based cryptocurrency exchange has signed a licensing deal with Bitpanda, an Austrian crypto investment business, that will see Coinbase serve as Bitpanda’s liquidity and custody provider.
According to a blog post from Bitpanda announcing the new partnership, Coinbase will be added as a liquidity provider for Bitpanda Technology Solutions, the company’s investing-as-a-service arm, giving Coinbase Institutional clients access to Bitpanda’s platform.
The new arrangement will allow Coinbase to use Bitpanda Technology Solutions’ business-to-business infrastructure to connect directly with banks and fintechs.
“This collaboration between two industry leaders will enable Coinbase to offer one of the most scalable Investing-as-a-Service infrastructures to their institutional clients, such as banks and financial institutions outside of the United States,” the blog post said. “This will open up a new European investment solution that mirrors Coinbase’s standards in safety and security.”
Through the integration, institutional clients at Coinbase will be able to utilize Bitpanda’s regulatory licenses and KYC-as-a-service “to speed up their go-to-market time across Europe” without having to migrate away from Coinbase.
“With Bitpanda Technology Solutions, our aim is to provide a swift and seamless route for institutions to meet the growing demand for modern investing solutions, instead of facing the alternative that going alone brings: high costs, extensive delays and an outdated final product,” Bitpanda said.
“Bitpanda and Coinbase share an ambition – to make investing in digital assets safe and secure in a regulated way,” said Lukas Enzersdorfer-Konrad, deputy CEO and COO of Bitpanda. “At a time of unparalleled opportunity for the industry to harness the potential of digital assets for its customers, we are coming together to define a clear future and drive forward that ambition.”
Coinbase joins a growing list of Bitpanda partners, which includes the traditional bank Raiffeisenlandesbank NÖ-Wien, European mobile bank N26, German core banking provider Mambu, French money app Lydia, and UK fintech Plum, among others. “Through these partnerships, we continue to cater to the growing demand for simplified investment opportunities,” Bitpanda said.
“[Coinbase is] excited to partner with Bitpanda, enabling our institutional broker clients outside of the U.S. to white-label Bitpanda's investing-as-a-service platform, providing their end customers with 24/7 trading across the full range of Bitpanda's asset classes,” Coinbase wrote in a tweet announcing the collaboration.
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This partnership comes as Coinbase is looking to get established in jurisdictions outside of the U.S. to support their ‘Go Broad, Go Deep’ international expansion drive amid a crackdown on digital asset companies by U.S. regulators.
In April, Coinbase obtained a license to operate in Bermuda and has since launched the Coinbase International Exchange, which offers Bitcoin and Ether perpetual futures settled in USDC with up to 5x leverage to institutional clients in eligible jurisdictions outside of the U.S.
Other recent developments for Coinbase on the international front include the launch of Signpass in Singapore and free bank transfers for retail customers in the region; a streamlined onboarding process for customers in Brazil and integration with Pix to allow easy withdrawal and deposits of Brazilian reals; significant resource investments in their Canadian operations and the signing of an enhanced Pre-Registration Undertaking (PRU) with Canadian policymakers; and the entry into discussions with authorities in Abu Dhabi with the goal of launching a regulated exchange in the region.