The U.S.-based crypto exchange Coinbase has partnered with the Austria-based crypto trading platform Bitpanda to consolidate its roots outside the U.S., especially in Europe.
The collaboration will see Coinbase establish a connection with European banks and fintech institutions seeking to offer digital asset services to their clients through Bitpanda's institutional investment services platform, Bitpanda Technology Solutions.
- As part of the partnership, Coinbase will become one of the liquidity providers for Bitpanda Technology Solutions, while Bitpanda's platform will use Coinbase Prime's custody services.
- Coinbase Institutional's clients outside the U.S. will also be able to access Bitpanda's investment services platform.
- Bitpanda Technology Solutions allows institutional clients to offer trading, investment, and custody tools for many assets, including crypto, to their own customers by integrating the platform's trading infrastructure.
- The infrastructure provider's clients include Austrian bank Raiffeisenlandesbank, German neobank N26, French fintech firm Lydia, Italian mobile bank Hype, and the U.K.-based fintech startup Plum.
- Bitpanda's chief operating officer (COO), Lukas Enzersdorfer-Konrad, said banks still want to offer crypto services to their customers despite a prolonged crypto winter and the damaged reputation of digital assets after last year's high-profile collapses.
- In the announcement, Lukas Enzersdorfer-Konrad also added that Coinbase and Bitpanda share an ambition to make the practice of digital asset investment safe and secure in a regulated way.
- The move has become Coinbase's latest effort to strengthen its presence outside the U.S. following its conflict with the U.S. Securities and Exchange Commission (SEC).
- The firm is currently in a legal battle with the SEC in which the regulator claims that the platform could violate the securities laws through its exchange and staking services, while the popular crypto exchange complains about the lack of regulatory clarity in the U.S. that it holds the agency responsible for.
- Earlier in May, the company launched a new Bermuda-based international derivatives exchange for institutional crypto traders outside the U.S.
- Coinbase's executive team, including CEO Brian Armstrong, also recently visited the United Arab Emirates (UAE) for strategic development in the region.
- Also, the firm diversified its crypto offerings in Singapore and made its subscription service available starting in the U.K., Germany, and Ireland.
- However, during the earnings call for Q1, Armstrong said the firm is still fully committed to the U.S. despite the regulatory uncertainty.