(Correctly shows that Bitpanda is a broker (not an exchange), in paragraphs 1 and 12)

Elizabeth Howcroft

AMSTERDAM (Reuters) – Deutsche Bank will work with Bitpanda to process customer deposits and withdrawals for the Austrian cryptocurrency broker, the companies told Reuters.

The cryptocurrency industry was already struggling to find banking partners, especially after the collapse of Silvergate Capital (OTC:) Corp in 2023, Signature Bank (OTC:) and Silicon Valley Bank, which had a high concentration of cryptocurrency customers.

However, in the latest sign of the cryptocurrency world moving closer to mainstream finance, Deutsche will make local bank account numbers available to Bitpanda users in Germany.

This means that fiat currency deposits or withdrawals from Bitpanda will go through the largest bank in Germany. Some banks do not allow customers to transfer funds to cryptocurrency exchanges.

Vienna-based Bitpanda, founded in 2014, claims to have more than 4 million users and offers products including fractional shares, cryptocurrencies and precious metals.

Regulators have expressed concerns that cryptocurrency market upheaval will spill over into mainstream finance as links between the two deepen, although analysts say connectivity between them remains restricted.

Deutsche’s global head of cash management, Ole Matthiessen, said the company was taking a “very cautious” approach.

“We only work with highly selected partners and clients that demonstrate rigorous compliance processes, operate in a regulated environment and meet our heightened expectations from a risk perspective,” Matthiessen said in emailed comments.

Deutsche does not engage in the transfer of any cryptocurrency under the Bitpanda deal, but instead helps customers move in and out of the wallet while supporting Bitpanda’s treasury and payment processes, Matthiessen said.

Kilian Thalhammer, global head of trading solutions at Deutsche, said it wants to be the “bank of choice for high-potential platforms” in the world of virtual asset investing.

A Deutsche spokesman said the bank has a similar partnership with Hong Kong-based cryptocurrency exchange Hashkey, but Bitpanda is the first such client in the Europe, Middle East and Africa region.

Bitpanda is already a corporate client of Deutsche’s in Austria and Spain, but they are not direct-to-consumer, a spokesman for the broker said.

(This story has been corrected to show that Bitpanda is a broker, not an exchange, in paragraphs 1 and 12)