Following its partnership with Bitpanda, N26, a digital bank based in Europe, has now launched cryptocurrency trading services, which will be available to all its users across other markets over the next six months.
Details About The Launch
Citing the announcement, customers will be able to trade over 100 tokens that, include Bitcoin, Ethereum, Solana, AVAX, and Shiba Inu. In addition, users have to attain identity verification checks before becoming eligible to make crypto trades.
CEO Valentin Stalf, in the announcement said, “While cryptocurrencies have seen a decline in value over the last year, they remain a requested and interesting asset class for investors and a growing part of the financial system.”
He added, “Cryptocurrency trading is often the entry point to investing for a new generation of investors who are looking to explore ways to grow their wealth.”
This new launch would first be available to its users in Austria. And because Bitpanda is yet to obtain a license from Germany’s financial regulator, N26 users of over 8 million across Europe will have to wait to access the new features.
“The BaFin license comes with a particularly high priority. We have been in the process of acquiring the most extensive license for some time now in order to create a serious and regulated environment for investments in digital assets in Germany, “ said a Bitpanda spokesperson.
The Launch Would Not Support Custodial Wallets
Notably, N26 has decided not to include support for custodial wallets – meaning users would not be able to move crypto outside N26.
Gilles BianRosa, N26′s chief product officer, said this brings about what it’s called a “closed-circuit investment loop” where users’ assets are sealed in a controlled environment.
“It’s not like you can convert those Bitcoins and buy something from the dark web with those assets from your wallet,” said BianRosa
And although some of crypto’s biggest upholders might say it is at odds with the technology’s decentralized roots, N26 claims this would only provide more excellent protection for its users.
How To Make Use Of The Crypto Trading Service
To make a trade, users will have to select a coin and state how much they want to buy or sell.
Once they complete their order, the funds are deducted from their main account balance and appear with the token of their choice. N26 added in the announcement that users could also “drag and drop” funds from their main account into their crypto portfolio or vice versa.
Looking at other fintech banks, N26 seems to be a latecomer in supporting crypto trading services. In June, PayPal introduced support for crypto assets deposits and withdrawals to its users. Digital banks, including Revolut, have also long offered users the ability to buy and sell crypto assets.
