Fintech companies see an opportunity in the negligence and reluctance of traditional banks toward the cryptocurrency ecosystem.
The banking capabilities of fintech have met cryptocurrencies in a new partnership between Australian crypto exchange BTC Markets and the local neobank Volt.
With a license to operate in Australia as an authorized deposit-taking institution since 2019, Volt will provide corporate cash management accounts for BTC Markets users to manage their Australian dollar funds. Those accounts allow real-time payments on the New Payments Platform, Australia’s national infrastructure for fast payments.
“This means near-instant trading opportunities for our crypto clients, as they can rapidly fund AUD into their BTC Markets account,” BTC Markets CEO Caroline Bowler told Cointelegraph, adding that in the future, the partnership would also allow BTC Markets users to open Volt bank accounts without leaving the exchange:
“It gives stability to our clients and builds out a key piece of market infrastructure which is vital to our industry development. […] It also goes to show that innovation is alive and well within Australian financial services.”
Speaking on the regulatory approach in Australia, Bowler reiterated the need for proportionate regulation that protects the investor without stifling innovation. “I think our partnership with a regulated entity here in Australia goes to show it is possible,” she added.
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Highlighting the displeasure of the crypto users regarding “the games being played by banks,” Volt co-founder Steve Weston explained, “The total of all deposits in Volt accounts are covered by the protection of up to a maximum of A$250,000 (US$185,900) per account holder under the Financial Claims Scheme.”
Despite the increasing adoption of crypto, where 17% of Australians own crypto according to a recent survey, regulators’ warnings on crypto exchanges have lead to a reluctant approach by traditional banks.
