Through this collaboration, Bitpanda users in Germany will gain the ability to conduct real-time payments on the platform. This initiative is expected to enhance transaction efficiency and security while bolstering liquidity for Bitpanda's clientele in the region.
The partnership entails Bitpanda using an application programming interface (API)-based account solution provided by Deutsche Bank, enabling access to German International Bank Account Numbers (IBANs). These IBANs are internationally recognised codes crucial for the secure processing of international transfers. Bitpanda intends to leverage this service to optimise the efficiency and security of fund transfers for its users. Consequently, users within the region will gain access to German IBANs for deposits and withdrawals, among other benefits. All fiat deposits or withdrawal requests on Bitpanda will be processed through Deutsche Bank for real-time settlements.
Bitpanda officials cited by cointelegraph.com emphasised the significance of bank partnerships in enhancing accessibility to cryptocurrencies. They also highlighted Bitpanda's longstanding commitment to trust, compliance, and security as the foundation for such advancements. Deutsche Bank will provide safeguarding accounts and payment solutions to support Bitpanda's treasury operations and reconciliation processes thus bolstering liquidity across core markets.
Bitpanda officials suggested that collaborations between crypto platforms and banks ultimately serve to benefit end-users by providing access to comprehensive crypto services. They noted that regulatory clarity, particularly under the Markets in Crypto-Assets Regulation (MiCA) framework, has encouraged major European banks to explore crypto solutions. However, they pointed out a lack of technical expertise among banks, prompting them to seek partnerships with specialised providers such as Bitpanda to bridge the gap in infrastructure and knowledge.
In April 2024, German federal bank Landesbank Baden-Württemberg (LBBW) agreed to offer crypto custody services through a partnership with Bitpanda. At the time, LBBW aimed to first offer crypto custody to corporate clients with a market launch planned for the second half of 2024.
The two companies have entered a strategic partnership, which means that LBBW was provided with an ‘Investment-as-a-Service’ infrastructure to ‘store and procure cryptocurrencies,’ including Bitcoin and Ethereum.
Officials from LBBW talked about this new partnership and said that by offering crypto-asset custody, they were positioning themselves with a clear added value for their corporate clients, while ensuring the high security standards. Bitpanda provided the necessary technical and regulatory infrastructure to offer their customers secure solutions in the field of digital assets.
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