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The
crypto industry has previously struggled to find banking
partners, particularly after the 2023 collapse of Silvergate
Capital Corp, Signature Bank 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.
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.
(Reporting by Elizabeth Howcroft; Editing by Tommy Reggiori
Wilkes and Alexander Smith)
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