Elizabeth Howcroft
AMSTERDAM (Reuters) – Deutsche Bank will partner with Bitpanda to process customer deposits and withdrawals on the Austrian cryptocurrency exchange, the companies told Reuters.
The crypto industry has previously struggled to find banking partners, especially after the collapse of Silvergate Capital (OTC:) Corp in 2023. Bank signature (OTC:) and Silicon Valley Bank, which had a high concentration of cryptocurrency-related clients.
But in another sign that the cryptocurrency world is moving closer to mainstream finance, Deutsche will provide local bank account numbers to Bitpanda users in Germany.
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 including fractional shares, cryptocurrencies and precious metals.
Regulators have expressed concern that turmoil in the cryptocurrency market will spill over into mainstream finance as ties between them deepen, although analysts say the connection between them remains limited.
Deutsche’s global head of cash management Ole Matthiessen said the company was taking 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.
According to Matthiessen, Deutsche is not involved in the transfer of any cryptocurrency under the Bitpanda agreement, but instead helps clients make transfers in and out of their portfolio while supporting Bitpanda’s treasury and payment processes.
Kilian Thalhammer, global head of trading 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 spokesman said the bank has a similar partnership with Hong Kong-based crypto exchange Hashkey, but Bitpanda is the first such client in its EMEA region.
Bitpanda is already a corporate client of Deutsche in Austria and Spain, but they do not work with clients, a representative of the exchange said.