Bitpanda has unveiled a strategic partnership with Coinbase, to make the exchange one of the approved liquidated providers of its white label investment product. Let’s take a detailed look at what this agreement means, which will mutually benefit both companies.
Coinbase Cash Integrates Bitpanda Technology Solutions
THURSDAY, Coinbase and Bitpanda have formalized a partnershipso that the US platform provides liquidity to the Austrian exchange’s “Technology Solutions” product:
We’re excited to announce that Bitpanda Technology Solutions is collaborating with another industry leader. With Bitpanda Tech, @coinbase will offer a regulated trading infrastructure to their clients like banks and financial institutions outside of the US. pic.twitter.com/leyHChQ3IU
—Bitpanda (@Bitpanda_global) May 25, 2023
As Bitpanda described it, this agreement will be mutually beneficial to both parties :
“As part of the agreement, Bitpanda will add Coinbase Exchange to its network of approved liquidity providers, giving institutions the ability to leverage Bitpanda’s extensive set of regulatory licenses and KYC-as-a-service to accelerate their market roll-out time across Europe. »
Bitpanda Technology Solutions is an Investment-as-a-Service (IaaS) platform, which means it offers white label investment solutions for clients of other institutions. She is the one who collaborates with Lydia and N26 for their services related to cryptocurrencies.
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A way to increase Coinbase’s presence in Europe
These last months, Coinbase has it both ways. On the one hand, the company is struggling to try to convince the American regulators to establish a clear regulatory framework, which is not easy, and on the other, it is diversifying its activities at the global level in order not to no longer be so dependent on the United States.
While Bitpanda already has a solid foundation in Europe at the regulatory levelfor example through its registration as a digital asset service provider (PSAN) in France, Coinbase will be able to reap the benefits.
Indeed, thanks to this agreement, the exchange will be able to redirect its institutional customers to Bitpanda Technology Solutions, for which it provides liquidity, thus creating synergies between the two companies.
This collaboration is interesting, because by having more liquidity, Bitpanda could be able to reach larger players, such as commercial banks wishing to offer services related to cryptocurrencies, thus accelerating mainstream adoption.
However, it will be necessary to qualify, by adding that with the multiplication of trusted third parties for the same service, this increases the risk of contagion in the event of a problem. We have seen this time and time again, especially with Gemini’s Earn product, affected by the bankruptcy of Genesis, itself affected by FTX.
👉 Also in the news — Digital Currency Group is shutting down TradeBlock, its institutional cryptocurrency trading platform
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