Austrian cryptocurrency trading and exchange platform Bitpanda will work with Coinbase to connect the largest exchange in the United States with European banks.
The move is the latest effort by Coinbase to expand abroad following the US regulatory war on cryptocurrencies. The partnership will allow Coinbase to use Bitpanda’s enterprise infrastructure layer to connect directly with banks and fintech companies.
In addition, Coinbase will become a liquidity provider for Bitpanda Technology Solutions (BTC), the company’s “investment as a service” division.
This will allow institutional clients of the platform to integrate the trading infrastructure and offer their own clients custody and investment tools in cryptocurrencies, according to reports.
Several banks, including the Austrian Raiffeisenlandesbank, the German neobank N26, the French fintech firm Lydia and the British investment firm Plum, are already using the service.
Coinbase Branches Out
According to BitPanda COO Lukas Enzersdorfer-Konrad, the implementation of Europe’s MiCA regulations will allow banks to offer crypto services to customers. Banks can see how much of their client funds have been flowing to cryptocurrency firms, he told CoinDesk before adding:
“They understand how much business they are losing, and also how many more of their customer base would do that business, if they had enough confidence in the process.”
“Bitpanda and Coinbase share one ambition: to make investing in digital assets safe and secure in a regulated manner,” he added.
Guillaume Chatain, Coinbase’s head of EMEA and APAC institutional sales, said the company was working hard to “update the financial system by creating trusted products that broaden the utility and adoption of cryptocurrencies.”
Coinbase is facing increasing regulatory pressure on its home turf in the United States following the threat of legal action from the Securities and Exchange Commission in March.
The SEC has rebutted their petition asking for more clarity on cryptocurrency regulations, stating that securities laws are already in place and there is no need for new legislation for the new asset class.
In addition to its European expansion ambitions, Coinbase has also been granted a license to operate in Bermuda as it gradually begins to move away from the harsh local environment. The firm is also considering the United Arab Emirates (UAE) as a potential strategic hub for its international operations.
Crypto Market Insights
Crypto markets have fallen sharply today, with total capitalization declining 3.3%, dipping to levels below support. As a result, the total cap has fallen to a two-month low of $1.14 trillion.
Bitcoin fell to $26,068 after a 4% drop, while Ethereum dipped to $1,778 after shedding 3.7%.
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