Markets
Deutsche Bank partners with Bitpanda in ‘cautious’ crypto shift 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 deposits and withdrawals from customers of the Austrian crypto broker, 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 customers.
But in the latest sign of the crypto world coming closer to traditional 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, founded in 2014, says it has more than 4 million users and offers products such as fractional shares, cryptocurrencies and precious metals.
Regulators have raised concerns that crypto market turmoil would spill over into traditional finance as ties between the two deepen, although analysts say connectivity between them remains limited.
Deutsche’s global head of treasury management, Ole Matthiessen, said the company had taken a “very cautious” approach.
“We only work with highly selective partners and clients who demonstrate strong compliance processes, operate in a regulated environment and meet our high risk expectations,” Matthiessen said in emailed comments.
Deutsche is not involved in the transfer of any cryptocurrencies through the Bitpanda deal, but rather helps customers make transfers in and out of their wallets while supporting Bitpanda’s treasury and payment processes, Matthiessen said.
Kilian Thalhammer, global head of merchant solutions at Deutsche, said it wants to be “the bank of choice for high-potential platforms” in the world of virtual asset investing.
A Deutsche spokesperson said the bank had a similar partnership with Hong Kong-based crypto exchange Hashkey, but that Bitpanda was the first such customer in its Europe, Middle East and Africa region.
Bitpanda is already a corporate client of Deutsche in Austria and Spain, but these are not directly customer-facing, a spokesperson for the broker said.
(This story has been corrected to show that Bitpanda is a broker, not an exchange, in paragraphs 1 and 12)