The partnership between Bitpanda and Deutsche Bank simplifies customer transactions and sees Deutsche making a major crypto play.
Leading Austrian cryptocurrency exchange Bitpanda has partnered with German financial services giant Deutsche Bank to process customer deposits and withdrawals for the exchange.
Deutsche Bank Collaborates with Bitpanda but Remains Cautious
Deutsche Bank confirmed to Reuters that it will generate local bank account numbers for Bitpanda users to process the transactions. This is a welcome development for the crypto industry because many financial institutions, especially large ones like Deutsche Bank, are skeptical of cryptocurrency transactions.
This skepticism is also present with Deutsche Bank, however measured. According to the company’s global head of cash management Ole Matthiessen, Deutsche Bank is very cautious with its choice of partners. Matthiessen said:
“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.”
Nonetheless, the financial giant’s global head of merchant solutions, Kilian Thalhammer, expressed readiness to work with the crypto industry. Thalhammer noted that Deutsche Bank hopes to be the “bank of choice” for the crypto sector’s “high-potential platforms”.
The new agreement with Bitpanda excludes Deutsche Bank from any cryptocurrency transfer. The banking giant will only help customers move funds in and out of their Bitpanda portfolios. In addition, Deutsche Bank will provide treasury and payment services to Bitpanda.
According to a Bitpanda spokesperson, the exchange has an existing relationship with Deutsche Bank as a corporate client in Spain and Austria. However, the corporate relationship is not a customer-facing arrangement.
Bitpanda Partnerships
The Bitpanda exchange is expanding its reach into the traditional financial sector by securing partnerships with conventional finance institutions. In April, Germany’s Landesbank Baden-Württemberg (LBBW), the country’s largest federal bank, announced a crypto custodial service in partnership with Bitpanda. Through the exchange, the banking giant, with more than $355 billion in assets under management (AUM), will begin providing crypto custody services to corporate and institutional clients in the year’s second half.
In an interview with Bloomberg, LBBW managing director of corporate banking, Jürgen Harengel, said the development is in response to demand from its corporate customers. Harengel said LBBW is convinced that digital assets will become essential to business models and is partnering with Bitpanda to provide early-stage technical and regulatory support.
Last month, Bitpanda extended its partnership with Raiffeisen Bank to offer crypto to the bank’s customers in 55 branches across Austria. The partnership began last year when both companies signed a letter of intent.
The exchange is bullish about its partnerships and business moves, projecting record profit this year. Bitpanda’s net sales for the first quarter of 2024 crossed €100 million, a considerable improvement over the €148 million ($160 million) it netted throughout 2023. Also, the company’s pre-tax profit for last year was €13.6 million, another significant upswing, considering the €130 million of losses recorded in 2022.
Bitpanda is currently working on launching services in the United Arab Emirates (UAE) by opening a regional office in the country. The first office will be in Dubai, at the DMCC Crypto Centre.
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