A cryptocurrency trading platform geared towards institutions is being introduced by Austrian fintech unicorn Bitpanda in response to the increasing demand for institutional crypto services in Europe.In order to better serve high-net-worth individuals, family offices, external asset managers, and corporate treasuries, Bitpanda, a prominent cryptocurrency broker that was established in 2014, has introduced Bitpanda Wealth.Bitpanda used the same infrastructure that several big European banks trusted to build the new institutional platform when announcing the news on January 30. Exchange-traded funds, leverage products, commodities, and other assets are among the services that Bitpanda Wealth provides in addition to a range of services that make investing in cryptocurrency easier.
Bitpanda is turning its attention to a sector in Europe that “seems underserved,” Bitpanda co-founder and CEO Eric Demuth told Cointelegraph.
“There’s a notable interest in this area, yet it lacks adequate solutions,” Demuth said, adding that Bitpanda has engaged with “numerous private banks and affluent clients who have expressed a need for a distinct service.”
According to the CEO, Bitpanda’s patented custody technology, Bitpanda Custody, which uses cold storage to protect its clients’ money, is used by the new institutional platform.Bitpanda Custody, which is registered with the Financial Conduct Authority of the United Kingdom, provides segregated wallets for corporate treasuries, institutional investors, service providers, and token issuers.
“When it comes to asset security, we are monitored by multiple financial market authorities, and have our funds and business practices regularly validated by external parties. We are trustees on behalf of our users, and all of their funds are held in cold storage — that’s a major difference between Bitpanda and an exchange.” Demuth stated.
The private keys that allow access to cryptocurrency holdings can be stored in one of the safest ways possible: cold storage, sometimes referred to as a cold wallet.Cold wallets are not connected to the internet, which greatly lowers the possibility of security lapses and hackers, in contrast to online hot wallets, which are frequently utilized by cryptocurrency trading platforms.
The company previously introduced Bitpanda Pro, an over-the-counter trading desk and brokerage services platform, in 2019. Bitpanda Wealth is not the first platform designed with institutions in mind from Bitpanda.After obtaining a Series A funding round worth 30 million euros, Bitpanda Pro changed its name to One Trading in 2021.The Bitpanda CEO told Cointelegraph, “One Trading was entirely separated from Bitpanda last year after a successful Series A.”
Bitpanda, a significant cryptocurrency company in Europe, has been proactively collaborating with regional authorities to obtain the essential licenses to offer its services.Bitpanda was granted a virtual assert service provider license in Norway in October of 2023.The company is also licensed in other European countries, including Germany, Austria, France, Czechia, and Sweden.In 2023, Bitpanda helped Raiffeisen Bank’s Raiffeisenlandesbank Niederösterreich-Wien introduce cryptocurrency trading services.