German digital bank N26 is launching a new product in partnership with Bitpanda, which will allow its clients in Austria to buy and sell close to 200 cryptocurrencies, the company said in a press release on 20 October.
According to the announcement, the launch of N26’s crypto trading service was in response to “strong local demand” in Austria, with 40% of the bank’s customers either actively trading crypto or expressed interest in investing in the asset class. The crypto trading tool will initially be available only to customers in Austria, but the bank plans to expand the new product to other key markets over the next six months. N26 co-founder and co-CEO, Valentin Stalf, said in a statement:
“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. 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. With N26 Crypto, we are offering a simple way to trade and invest, with a great user experience and low and transparent fees.”
The feature will allow N26 customers to purchase crypto directly for their fiat bank accounts, with a 1.5% transaction fee for BTC and 2.5% for all other crypto assets. The company noted that crypto trading will be offered as a “wealth building feature”, meaning customers will only be able to buy and sell assets and will not have the option to transfer them to other digital wallets.
N26 Crypto will be powered by Bitpanda’s White Label product — already used by financial service providers in Italy — which allows institutions to tap into Bitpanda’s 24/7 trading platform. Bitpanda will be the one managing execution of trades and custody of tokens for N26 clients.