Bitpanda launches institutional crypto platform with cold storage
Austrian fintech unicorn Bitpanda is launching an institutional-grade cryptocurrency trading platform in response to the growing demand for institutional crypto services in Europe.
Founded in 2014, Bitpanda, a leading cryptocurrency brokerage, has launched Bitpanda Wealth, a service targeting high net worth individuals, family offices, offshore asset managers and corporate treasuries.
Announcing the news on January 30, Bitpanda's new institutional platform was built using the same infrastructure trusted by many major European banks. Bitpanda Wealth offers a variety of services to facilitate crypto investment, management and reporting services, and also features leveraged products, currencies, commodities and other assets.
Bitpanda is turning its attention to a sector in Europe that “seems to be underserved,” Bitpanda co-founder and CEO Eric Demus told Cointelegraph.
“There is significant demand in this area, but not enough solutions,” said Demuz, adding that Bitpanda has partnered with “many private banks and wealthy clients who have expressed a need for a specific service.”
The new institutional platform uses Bitpanda's proprietary custody solution known as Bitpanda Custody, which implements cold storage to protect its customers' assets, the CEO noted. Registered with the UK Financial Conduct Authority, Bitpanda Custody offers distributed wallets for institutional investors, service providers, token issuers and corporate treasuries.
Demuz said:
In terms of asset safety, we are subject to the supervision of several financial market authorities and our funds and business operations are regularly verified by external bodies. We are trustees on behalf of our users, and all their funds are held in cold storage – that's the big difference between Bitpanda and an exchange.
Cold storage, also known as cold wallet, is one of the most secure ways to store private keys to access crypto holdings. Unlike the online hot wallets often used by crypto trading platforms, cold wallets are disconnected from the internet, which greatly reduces the chances of security breaches and hacking.
Related: Robinhood launches crypto trading services in Europe
Bitpanda Wealth is not the first institutions-oriented platform launched by Bitpanda; The firm previously launched Bitpanda Pro, a brokerage service platform and free trading desk in 2019. In 2021, Bitpanda Pro became a trading company after securing a €30 million Series A round.
Bitpanda's CEO told Cointelegraph that “One Trading has completely separated from Bitpanda after a successful Series A last year.”
Bitpanda, a leading crypto firm in Europe, is actively working with local regulators to secure the necessary licenses to provide its services. In October 2023, Bitpanda received a license as a virtual authentication service provider in Norway. The company holds licenses in other European states such as Austria, Germany, France, Czechia and Sweden.
Bitpanda also helped Raiffeisen Bank Raiffeisenlandesbank Niederösterreich-Wien launch crypto trading services in 2023.
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