European online bank N26 will offer crypto trading to its customers. As a result of the announcement, traditional financial institutions are experimenting with crypto by offering the product to their clients. The product will be launched in Austria first, according to N26.
Crypto trading will be offered by N26 as a “wealth-building feature,” Gilles BianRosa, head of products at N26, said. Customers can buy and sell crypto, but they can’t transfer it to other digital or offline wallets.
“The bank’s platform is a “non-anonymous crypto trading system” with eligibility criteria beyond the bank’s existing KYC requirements for new customers, which has a significant impact on security and fraud prevention,” BianRosa said.
N26, a German bank founded in 2013, is one of Europe’s largest fintech companies, valued at $9 billion. In 2021, Forbes named it the best bank in the world and the best in Austria. It is possible that N26 will expose its 7 million customers to the crypto industry.
Analysts, however, are skeptical of the move, noting that the timing would have been better if it had occurred during the crypto winter. It has been a bearish year for the crypto market, resulting in a loss of over $2 trillion.
N26 crypto trading product
The N26 crypto product, which will include 100 cryptocurrencies, including Bitcoin and Ethereum, will be available to Austrian customers in the coming weeks. . Gilles BianRosa, N26’s chief production officer, told CNBC that its Crypto feature let customers “dip their toes into the water without being overwhelmed.”
The customer selects the coin they want to buy or sell, specifies the amount, and initiates the trade. The funds will be deducted from their primary account, and the new balance will appear on their dashboard.
Clients won’t have as much freedom to move coins from their wallets since the funds will be held in a non-custodial wallet. The product will also feature a drag-and-drop option to move into their crypto account from the main account.