Markets
Deutsche Bank teams up with Bitpanda in “cautious” crypto move By Reuters
(Corrects to show that 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 cryptocurrency exchange, the companies told Reuters.
The crypto industry has already struggled to find banking partners, especially after the 2023 collapse of Silvergate Capital (OTC:) Corp, Signature Bank (OTC:) and Silicon Valley Bank, which had a high concentration of crypto-related clients.
But in the latest sign that the crypto world is catching up with conventional finance, Deutsche will provide Bitpanda users in Germany with local bank account numbers.
This means that deposits or withdrawals of Bitpanda fiat currencies will go through Germany’s largest bank. Some banks do not allow customers to transfer funds to cryptocurrency exchanges.
Bitpanda, based in Vienna and founded in 2014, claims to have more than 4 million users and offers products including fractional shares, cryptocurrencies and precious metals.
Regulators have raised concerns about crypto market turbulence spilling over into conventional 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 the company had taken a “very cautious” approach.
“We only work with very selective partners and customers who demonstrate strong compliance processes, operate in a regulated environment and meet our highest expectations from a risk perspective,” Matthiessen said in emailed comments.
Deutsche does not engage in the transfer of any cryptocurrencies through the Bitpanda arrangement, but instead helps clients move in and out of its portfolio while supporting Bitpanda’s treasury and payment processes, Matthiessen said.
Kilian Thalhammer, global head of trading solutions at Deutsche, said it wanted to be “the bank of choice for high-potential platforms” in the world of virtual asset investing.
A Deutsche spokesperson said the bank has a similar partnership with Hong Kong-based crypto exchange Hashkey, but that Bitpanda is the first customer of its kind in the Europe, Middle East and Africa region.
Bitpanda is already a corporate client of Deutsche in Austria and Spain, but does not serve clients, a spokesperson for the exchange said.
(This story has been corrected to show that Bitpanda is a broker, not an exchange, in paragraphs 1 and 12)