Coinbase announced that that it has opened a secure bank account with the international recognized financial company Barclays. This partnership shows that traditional financial institutions are interested in the crypto market and do not want to lose potential clients and profits.
At the same time, Barclays is considering to open a Bitcoin trading desk following the decision of the New York City-based Goldman Sachs Group.
Barclays and Coinbase Work Together
Coinbase, one of the leading firms in the crypto industry, and Barclays, the second major investment bank on earth, have arranged that Coinbase will be able to use a secure bank account registered within the financial institution.
The signed deal will allow Coinbase to reduce the cost of operations related to transactions in fiat currencies. Moreover, transactions will be carried out much faster than now, clients will experience an improved overall experience, and the virtual currency market will reach more individuals ready to place their money in cryptocurrencies.
The announcement comes sometime after Coinbase was granted an e-money license from the UK Financial Conduct Authority. With this license, Coinbase is able to operate in the European Union – as long as the Brexit process still ongoing.
The partnership between these two companies is a sign that virtual currencies call the attention of investors all over the world and not only in some markets. According to Zeeshan Feroz, chief executive of Coinbase in the United Kingdom commented that Coinbase and Barclays have been involved in lengthy discussions during an important period of time. Why? Because Barclays wanted to be sure that Coinbase has strong anti-money laundering policies.
Barclays’ Bitcoin Trading Desk
Barclays is getting closer to the crypto market. Since some months, cryptocurrencies are being traded 50% down from their all-time high registered in December 2018. But according to some experts like the CEO of Pantera Capital, Dan Morehead, cryptocurrencies and Bitcoin may have reached its lowest point in 2018.
That’s why Barclays may be interested in starting a cryptocurrency trading desk. According to Bloomberg, Barclays could join Goldman Sachs Group Inc, in pioneering a new business on Wall Street.
Spokesman Andrew Smith said in an emailed statement:
“We constantly monitor developments in the digital currency space and will continue to have a dialog with our clients on their needs and intentions in this market.”
In order to open a cryptocurrency trading desk an approval from the investment bank boss Tim Throsby. Currently, no other important or recognized European investment bank is trying to build a similar desk.
There is an increased demand for such services coming from hedge funds, that want to be part of the crypto market but do not find banks to handle the transactions. Indeed, some money managers have struggled to expand into cryptocurrencies due to the fact that they cannot use unregulated exchange to trade and/or hold investments.
Barclays may be one of the leading banks moving towards cryptocurrencies in the European continent. Another important bank that is working with blockchain technology and virtual currencies is Santander Group, that will soon launch a blockchain-based product to the European market very soon.