- Deutsche Bank partners with Bitpanda to handle customer deposits and withdrawals, offering local bank account numbers in Germany.
- This partnership marks a step toward integrating crypto with mainstream finance despite regulatory concerns about market instability.
- Deutsche Bank supports Bitpanda’s treasury processes but does not transfer cryptocurrencies, ensuring strong compliance and risk management.
Deutsche Bank is collaborating with Bitpanda to handle customer deposits and withdrawals for the Austrian cryptocurrency broker, as confirmed by both companies to Reuters.
The crypto sector has faced challenges in securing banking partners, especially following the 2023 failures of Silvergate Capital Corp, Signature Bank, and Silicon Valley Bank, which were heavily involved with crypto clients. However, this partnership marks a significant step toward integrating crypto with mainstream finance, as Deutsche Bank will offer Bitpanda users in Germany local bank account numbers.
This collaboration implies that all deposits and withdrawals of fiat currencies from Bitpanda will be processed through Germany’s largest bank. While some banks prohibit customers from transferring funds to cryptocurrency exchanges, this partnership with Deutsche Bank facilitates these transactions.
Founded in 2014 and based in Vienna, Bitpanda boasts over 4 million users and offers a range of products, including fractional stocks, cryptocurrencies, and precious metals.
Regulators have expressed concerns about potential crypto market instability affecting mainstream finance as connections between the two sectors strengthen. However, analysts note that the current level of interconnectivity remains limited.
Ole Matthiessen, Deutsche Bank’s global head of cash management, stated that the bank has adopted 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.”
Ole Matthiessen, Deutsche Bank’s global head of cash management
He clarified that Deutsche Bank does not participate in the transfer of any cryptocurrencies under the Bitpanda agreement. Instead, the bank assists clients in transferring funds into and out of their portfolios while supporting Bitpanda’s treasury and payment processes.
Kilian Thalhammer, Deutsche Bank’s global head of merchant solutions, expressed the bank’s ambition to become “the bank of choice for the high-potential platforms” in the realm of virtual asset investing.
A Deutsche Bank spokesperson mentioned that the bank has a similar partnership with Hong Kong-based crypto exchange Hashkey. However, Bitpanda is the first client of this kind in the bank’s Europe, Middle East, and Africa region.
Bitpanda is already a corporate client of Deutsche Bank in Austria and Spain, though these partnerships are not customer-facing, according to a spokesperson for the broker.
