Austrian-based financial technology company and cryptocurrency exchange Bitpanda has signed a partnership deal with Coinbase making the latter a liquidity provider and custody provider for Bitpanda Technology Solutions. Notably, Bitpanda Technology Solutions is the “investing-as-a-service” arm of the fintech company.
At the same time, Coinbase’s institutional clients who are outside the United States will be granted access to Bitpanda’s “investing-as-a-service” platform as a white-labeling service through the licensing deal.
Coinbase Rolls Out Institutional Products
Ultimately, this is a strategy for Coinbase to connect with banks and fintech in Europe that are interested in offering digital assets to their customers.
Now, Coinbase’s institutional clients can adopt trading infrastructure to help them offer their own customers trading, investment, and custody tools for stocks, crypto, and other assets. Raiffeisenlandesbank, German neobank N26, French fintech firm Lydia, and the UK’s Plum are already exploring this service.
Institutional Crypto Interest Peaks After Bear Market
The previous year was hellish for the crypto market with multiple bankruptcy filings from the likes of Celsius Network, Three Arrows Capital, Babel Finance, and the renowned FTX exchange. Markedly, the collapse of Terra (LUNA) shook the market and caused a major loss of up to $2 trillion from the crypto ecosystem. By the end of the year, it seemed like many institutional investors had gotten a reduced appetite for crypto investments.
However, the Bitcoin (BTC) rally which began in the first quarter of 2023 saw many investors increasing their crypto holdings. It is, therefore, somewhat safe to say institutional clients are still very much interested in crypto trading not minding the unfortunate tragedy which befell the crypto industry last year.
Coinbase Expands Services Outside the U.S.
At the same time, the cryptocurrency exchange is gradually expanding its business outside the United States. A few days ago, Coinbase introduced new USDC-related and staking offerings to its clients in Singapore. Also, the exchange has secured a regulatory license from the Bermuda Monetary Authority and is therefore set to introduce offshore derivatives exchange in the region
The plan to expand outside the U.S. intensified recently, especially with the recent crackdown on crypto firms in the region. The American publicly traded firm has an ongoing lawsuit with the Securities and Exchange Commission (SEC) and has recently submitted a new filing in court in connection to the case.