Users cannot transfer funds off the platform due to the bank not supporting custodial wallets, but there are lower fees for bitcoin than other digital assets.
N26, a $9 billion European digital bank, is launching bitcoin and cryptocurrency trading services, per a report from CNBC.
N26 Crypto, the bank’s newly formed service, is set to roll out to Austrian clients over the next few weeks and initially include bitcoin and a number of cryptocurrencies. Following its initial release, N26 plans to expand its service offering to clients in other markets over the course of the next six months.
However, users looking to leverage N26’s service should note that the bank does not support custodial wallet transfers, meaning users will not be able to move their bitcoin off of the platform.
Moreover, users looking to buy bitcoin on the platform will simply need to access their online account, click bitcoin, and the necessary cash for the transaction will be deducted from the user’s main account. N26 clients will also be able to move funds interchangeably between their main accounts and their digital asset portfolio.
The bank is charging a 2.5% fee on buy and sell orders for all cryptocurrencies, however clients looking to trade in bitcoin will only pay 1.5%. Additionally, if the client is signed up for N26’s Metal subscription account, the fee for cryptocurrencies drops to 2% while the fee for trading bitcoin drops to 1%.
The functionality for crypto trading services is being provided by Bitpanda, an Austrian cryptocurrency and stock trading app that is backed by Peter Thiel. The partnership allows Bitpanda to pocket a commission for each trade and N26 noted it plans to expand its tradable assets in the future.