Volt, the first direct Australian bank that operates exclusively online, entered into a partnership with digital currency exchange BTC Markets (BTCM) to provide the latter and its clients with improved stability, reliability, and speed of digital asset investments. This is facilitated by Volt’s banking-as-a-service (BaaS) platform. At first, BTCM will obtain integrated banking capabilities by getting access to a corporate cash management account with payment automation and notifications in real time.
BTCM clients to use their own Volt accounts
Rather than making deposits into BTCM trust accounts, the exchange’s users will have their own Volt accounts, integrated within the BTCM environment. Under the Financial Claims Scheme, the maximum protected deposit amount will be $250,000 per account holder.
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Andrew Clouston, Volt Chief Customer & Partnerships Officer, said:
“We are excited to team up with another homegrown Australian fintech pioneer. BTC Markets was one of the first and remains one of the largest and most trusted digital currency exchanges in Australia. This partnership will enable BTCM to stay at the forefront of a rapidly-growing industry. We’ve been particularly interested to see digital currencies grow in popularity, credibility, and security over the past few years. We believe BTC Markets and Volt are primed to deliver safe and secure banking access to support Australians seeking to trade in digital assets.”
Providing innovation and access to banking solutions
The neobank points out that this partnership shows BaaS can enhance competition on the banking market in Australia and provide novelty and access to banking solutions for fintechs and their clients. This type of partnership sets a precedent in Australia, coming in the wake of a recent Senate inquiry, which accused conventional banks of denying cryptocurrency operators basic banking services.
Caroline Bowler, BTCM CEO, said:
“This partnership will allow BTC Markets to offer its customers even greater increases to speed, stability, and confidence when transferring funds. Increased speed will result from our customers gaining almost instant access to Australian dollars for trades through native and integrated banking solutions such as bank accounts. Greater stability will arise out of this first-of-its-kind relationship between a bank and a crypto exchange in Australia.”
According to BTCM data, 13% of Australians owned cryptocurrencies toward February 2021. The exchange’s 325,000 Australian customers have traded the equivalent of $17.1 billion in digital assets so far.
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