Challenger Bank N26 is set to launch a new crypto trading feature, with the help of Bitpanda. Customers will be able to trade nearly 200 cryptocurrencies on N26 Crypto using money from their N26 account.
The product will first be gradually available to customers in Austria, before expanding to other markets over the next six months. According to the German digital bank, the trading product will meet local demand, where 40% of users are actively trading or have expressed interest in investing in cryptocurrencies.
“Although cryptocurrencies have seen a decline in value over the past year, they remain a demanded and attractive asset class for investors and a growing part of the financial system.“said Valentin Stalf, co-founder and co-CEO of N26.
“Cryptocurrency trading is often the entry point to investing for a new generation of investors looking to explore ways to grow their wealth.”
With more than €6 billion in client account deposits, N26 Crypto aims to help its clients manage more aspects of their finances, the bank said, as it takes its first steps into trading and l ‘investment.
It does this with the help of Austrian fintech Bitpanda, which will handle trade execution and coin custody.
“As the industry evolves, it’s becoming increasingly clear that the best way for fintechs to have a real impact on people’s lives is to work together.“said Eric Demuth, co-founder and CEO of Bitpanda.
“Bitpanda White Label, our investment-as-a-service solution, gives our B2B partners access to the entire Bitpanda infrastructure in a modular and individual way.”
This new collaboration between the two major players in the DACH region follows reports revealed by Finance Forward a few weeks ago that N26 was one day planning to acquire Bitpanda.
According to insiders, the deal fell through quickly, but N26 reportedly had its eyes on fintech after a few years of reluctance to get into crypto.
With this new partnership, N26 will make 100 coins available for trade initially, and plans to add 94 more.
Transaction fees will vary depending on the type of subscription: customers in the metal sector will have to pay 1% on bitcoins and 2% on all other currencies, while all other customers will have to pay 0.5% more on both.