Neobank N26 Launches Crypto Trading Product

<p> N26, the German neobank headquartered in Berlin, announced on Thursday the launch of a new cryptocurrency trading product dubbed N26 Crypto. Austrian customers will be the first to test new functionalities via the N26 App, while other markets will be gradually added in the upcoming months.</p><p class="MsoNormal">N26 Crypto offers access to almost 200 <a href="https://www.financemagnates.com/terms/c/cryptocurrencies/" target="_blank" id="b091101e-6e02-4b36-aa0e-7c972dfdd6ed_1" class="terms__main-term">cryptocurrencies</a>, including the biggest names in the crypto industry. Company officials have confirmed that the newest release addresses strong local demand; 40% of current neobank clients are interested in crypto assets or are already actively buying and selling cryptos. </p><p class="MsoNormal"><a href="https://www.financemagnates.com/tag/n26/" target="_blank">N26 </a>clients who are not Austrian residents are being asked to be patient, as new jurisdictions and markets will be announced in the next six months.</p><p class="MsoNormal">“The N26 banking experience has always been built around the customers’ needs, with features that make money management easy. With N26 Crypto, we have created a simple, intuitive product that integrates seamlessly into N26’s fully-regulated banking experience where one’s bank balance, savings, and investment portfolio sit side by side – with cryptocurrencies being the first asset class we intend to offer,” Gilles BianRosa, the Chief Product Officer at N26, said.</p><p class="MsoNormal">The cryptocurrency offering was prepared by a partnership with the crypto company, Bitpanda GmbH, which recently opened its new headquarters in Austria. Bitpanda will be responsible for custodian services and trades execution.</p><p class="MsoNormal">Challenger Bank Tries to Catch Up with Bigger Players</p><p class="MsoNormal">Although neobanking companies are commonly associated with new technologies and innovative products, N26 lags behind its competitors, even the more traditional ones, as a latecomer to the recent crypto rush. </p><p class="MsoNormal">Fintech companies like <a href="https://www.financemagnates.com/fintech/news/revolut-expands-crypto-offering-with-11-trendy-tokens/">Revolut</a> and <a href="https://www.financemagnates.com/cryptocurrency/news/paypal-to-allow-exchange-of-cryptos-with-external-wallets/">PayPal</a> added cryptos to their offering a long time ago, while payment giants like <a href="https://www.financemagnates.com/cryptocurrency/news/mastercard-set-to-offer-cryptocurrency-services/">Mastercard</a> and <a href="https://www.financemagnates.com/cryptocurrency/news/visa-to-support-clients-through-crypto-advisory-services/">Visa</a> have also located themselves within the web3 industry.</p><p class="MsoNormal">The timing of N26’s decision to join the cryptocurrency market could have been better. Main assets have been falling for the last 12 months, and year-to-date, losing more than 50%. Bitcoin (BTC), the oldest and the biggest crypto asset, is currently trading at around $19,000, while in October 2021, its price was three times higher.</p><p class="MsoNormal">N26 was founded in 2013 and launched its first product in 2015. Currently, the firm operates in more than 25 markets, servicing five million customers worldwide. <a href="https://www.financemagnates.com/fintech/news/challenger-bank-n26-raises-another-100m-in-series-d-extension/">Since the last funding round</a>, it has retained its valuation of $3.5 billion.</p> This article was written by Damian Chmiel at www.financemagnates.com.

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Revolut Pulls the Plug on Crypto in US, Citing Regulatory Environment

Revolut, a London-based neobank, plans to wrap up its crypto trading offering to users in the United States by October 3, CoinDesk reported today (Friday). Users have until September 2 to purchase digital assets on the platform, and another one month to sell their crypto holdings.

Revolut to Quit US Crypto Market

According to CoinDesk, the challenger bank blamed the “difficult decision” on the “evolving regulatory environment” in the United States. In recent months, the Securities and Exchange Commission (SEC) has intensified its crackdown on “crypto-asset securities” offered by “unregistered” trading platforms such as Binance and Coinbase.

In the lawsuit against Binance filed in early June, the SEC listed 13 tokens, including Cardano’s ADA, Polygon’s MATIC, and Solana’s SOL, as unregistered securities. The move forced several platforms including Revolut, Robinhood and eToro, to move towards delisting some of the tokens from their platforms.

Revolut, which suspended the purchase of ADA, MATIC and SOL on its platform, initially gave its US users until September 18 to sell their holdings. With the deadline several weeks away, Revolut has decided to instead shut down its entire crypto services in the country.

However, Revolut in a statement shared with CoinDesk noted that its users from other regions are not affected by the decision. It emphasized that the move will impact less than 1% of its crypto customers across the world.

“This decision has not been taken lightly, and we understand the disappointment this may cause,” Revolut stated.

Revolut Grows amidst Challenges

Revolut's planned exit from the US crypto market comes at a time the fintech company, which recently marked its first full year of profit, is enduring blows to its valuations. The firm, which began as a cross-border money transfer platform and subsequently expanded into crypto trading, consumer loans, and pet insurance, is also struggling to secure a banking license in the UK, Finance Magnates reported. Moreover, the bank reportedly lost $20 million to fraudsters due to a fault in its payment systems, according to the Financial Times.

However, despite the challenges, Revolut recently surpassed 30 million users on its platform, "growing almost one million customers per month," according to Nik Storonsky, the company's Co-Founder and CEO.

Last month, the challenger bank added a robo-advisor to its super app for users in the United States. It also rolled out Joints Accounts products in the UK and expanded its financial services to New Zealand.

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