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Fintech firms perceive an opportunity in traditional banks’ apathy and hesitancy towards the cryptocurrency ecosystem.
In a new collaboration between Australian crypto exchange BTC Markets and local neobank Volt, fintech banking capabilities have met cryptocurrencies.
Volt, which has been licenced to operate as an authorised deposit-taking institution in Australia since 2019, will provide corporate cash management accounts for BTC Markets users to manage their Australian dollar holdings. These accounts enable real-time payments on Australia’s national rapid payments infrastructure, the New Payments Platform.
“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 about Australia’s regulatory strategy, Bowler emphasised the importance of proportionate regulation that protects investors without impeding innovation. “I believe our collaboration with a regulated organisation here in Australia demonstrates that it is possible,” she continued.
Volt co-founder Steve Weston explained that “the total of all deposits in Volt accounts are covered by the protection of up to a maximum of $250,000 AUD ($185,900) per account holder under the Financial Claims Scheme,” highlighting crypto users’ dissatisfaction with “the games being played by banks.”
Despite the growing popularity of cryptocurrency, with 17 percent of Australians owning it according to a recent study, officials’ warnings on crypto exchanges have lead to a reluctant approach by traditional banks.