Bitpanda and Coinbase have recently entered into a licensing agreement, establishing Coinbase as a liquidity provider for Bitpanda Technology Solutions.
The collaboration aims to enhance Coinbase’s services for institutional clients outside the United States by providing them with a highly scalable Investing-as-a-Service infrastructure. This strategic partnership will enable Coinbase to offer a fully regulated trading setup to its institutional clients, while Bitpanda will integrate Coinbase Exchange into its network of approved liquidity providers. Consequently, financial institutions can leverage Bitpanda’s regulatory licenses and KYC-as-a-service to facilitate their entry into the European market, all while maintaining their own brand identity.
Eric Demuth, the co-founder and co-CEO of Bitpanda, expressed on Twitter that the agreement was established on the basis of a shared vision for the future of digital assets, as well as a mutual commitment to trust, transparency, and security.
Bitpanda and Coinbase Branching Out
BitPanda’s Chief Operating Officer, Lukas Enzersdorfer-Konrad, highlights that the implementation of Europe’s MiCA regulations will empower banks to offer cryptocurrency services to their customers. By monitoring the flow of customer funds into crypto companies, banks can gain visibility into the extent of crypto adoption.
Guillaume Chatain, Head of Institutional Sales EMEA and APAC at Coinbase, emphasizes the firm’s dedication to revolutionizing the financial system through the creation of reliable products that enhance the utility and acceptance of cryptocurrencies.
Coinbase is currently facing mounting regulatory pressure within the United States, prompted by the Securities and Exchange Commission’s threat of legal action in March. Despite Coinbase’s request for clearer crypto regulations, the SEC has rejected the petition, arguing that existing securities laws are sufficient and new legislation is unnecessary for this emerging asset class.
Expanding beyond its domestic challenges, Coinbase has obtained a license to operate in Bermuda, a step towards diversifying its operations away from the challenging regulatory environment in the United States. Furthermore, the company is considering the United Arab Emirates (UAE) as a potential strategic hub for its international activities.