- Coinbase and Bitpanda's strategic alliance aims to expand institutional trading services globally, extending beyond the United States market.
- The partnership allows Bitpanda to leverage Coinbase's liquidity services and custody solution, enhancing its offerings to institutional clients.
- Both Coinbase and Bitpanda are regulated entities offering KYC-as-a-service, enabling quick integration of API.
Coinbase, a prominent cryptocurrency exchange, has formed a strategic alliance with Austrian fintech company Bitpanda, according to a report by Fintech Finance on May 23. This partnership will extend the two entities’ institutional trading services to markets beyond the United States.
Additionally, Bitpanda will benefit from utilizing Coinbase’s liquidity services and Coinbase Prime’s custody solution.
The report emphasizes that Coinbase and Bitpanda are regulated entities offering KYC-as-a-service, enabling institutional clients to expedite their market entry by swiftly integrating API and white-labeled services.
On May 24, it was reported that Coinbase would have the opportunity to collaborate with European banks and fintech firms due to this partnership.
Guillaume Chatain, Coinbase’s Head of Institutional Sales EMEA & APAC, commented on the global implications of this collaboration. He expressed Coinbase’s belief in the ability of cryptocurrencies and blockchain to enhance economic freedom and create opportunities worldwide.
Coinbase CEO Brian Armstrong may relocate the company’s U.S. headquarters due to regulatory challenges in April. However, he later clarified that Coinbase will remain in the United States.
On May 2, Coinbase launched a new platform called Coinbase International Exchange, focusing on the European Union market. Similar to the Bitpanda partnership, this platform exclusively caters to institutional clients.
Broader industry developments include introducing new regulations in the European Union known as the Markets in Crypto Assets (MiCA) framework. These regulations aim to establish a more structured operational environment for cryptocurrency firms like Coinbase. Implementing MiCA could offer a more manageable operating framework, addressing some challenges Coinbase and other crypto entities face.
With the Coinbase-Bitpanda partnership and the evolving regulatory landscape in the EU, the stage is set for increased institutional adoption of cryptocurrencies and the continuous growth of the digital asset market.