The rave of crypto adoption seems to be taking a new dimension as the German online bank N26 said on Thursday that it would allow its customers in Austria to trade cryptocurrencies on its App.
Although this is its first attempt with the crypto asset class, the bank is optimistic about expanding its service base capabilities to over 200 Crypto options. However, it will originally include 100 tokens, including Bitcoin (BTC), Ether (ETH), Ripple (XRP), and Cardano (ADA).
Gilles BianRosa, Chief Product Officer at N26, said:
“The N26 banking experience has always been built around the customers’ needs, with features that make money management easy. With N26 Crypto we have created a simple, intuitive product that integrates seamlessly into N26’s fully-regulated banking experience where one’s bank balance, savings, and investment portfolio sit side by side – with cryptocurrencies being the first asset class we intend to offer.”
N26 co-founder and Co-CEO, Valentin Stalf said:
“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.”
N26 Leverages Bitpanda and Charges 2.5% Fee on Every Trade
Transacting on the platform is quite simple; users just need to select the coin of their choice and indicate the amount they are willing to buy or sell. On the completion of their order, a deduction equivalent to the amount specified is deducted from their main account balance.
N26 also clarified that customers can “drag and drop” funds from their main account into their crypto portfolio or vice versa.
The Berlin-based financial institution is leveraging Bitpanda, an Austrian crypto exchange and custody platform, to make the bank services accessible to its customers. However, the trading fee of N26 seems to be quite much and may scare users away. A 2.5% commission on every trade is to be charged for other cryptocurrencies apart from Bitcoin, which it offers at 1.5%.
It was reported earlier this month that N26 was interested in acquiring Bitpanda in 2020, shortly before it was declared a fintech unicorn with a $4.1 billion valuation.
N26 Takeoff Could Have Been Better Timed
It does seem that N26 is a bit late in making this decision. Other financial platforms like Paypal, Revoult, Mastercard, Visa, etc, have long incorporated crypto trading into their services. Nubank, a digital bank in Brazil, launched its native cryptocurrency on Wednesday.
No doubt, the crypto market is currently in a big mess and it’s affecting many businesses, causing them to fold up. Some days ago, Nuri, a German crypto bank, declared temporary insolvency and asked its 500k users to withdraw their funds.
Of course, no one knows when the bulls in the crypto market will take over from the bears. But hopefully, N26 won’t encounter a similar issue Nuri bank is currently battling.
It’s important to reiterate that the $9 billion European bank solely operates online without any traditional bank branches.
Despite its valuation, the bank has faced strong resistance to penetrating the United Kingdom and the United States markets. Yet, it has invested heavily in strengthening its Anti-money laundering measures as demanded by regulators.