Coinbase cracks a banking deal with Barclays
March 16, 2018 12:17 pm,
Amidst various British banks shutting doors for digital money, cryptocurrency investors and exchanges, Europe’s big lender, Barclays bank, is embracing the frustrated investors and exchanges. Barclays has agreed to provide US cryptocurrency exchange Coinbase with access to the UK’s Faster Payments Scheme in a first for the bank and for an exchange in the UK.
This deal marks the first major partnership between a UK bank and cryptocurrency exchange. One of the most noticeable outcomes of this partnership will be Faster Payments which will simplify the process of topping up and withdrawing money from Coinbase for UK customers.
Along with this deal, Coinbase, which has nearly 12 million users, also said it was granted an e-money license by the UK regulator- the Financial Conduct Authority (FCA), and adds support for the Faster Payments Scheme (FPS).
The license will allow Coinbase to issue e-money and provide payment services in the UK. The license requires Coinbase’s e-money operations to meet the strict rules enforced by the FCA and the Payment Services Directive. For its customers, this will ultimately help them deliver a better experience through new partnerships and an easier way to use the product.
Previously, Coinbase customers’ had to rely on an Estonian bank which saw the customers bare heavy exchange rates. But with Coinbase having an account with Barclays bank, UK customers will enjoy faster transaction times and fair exchange rates.
Zeeshan Feroz, the UK CEO at Coinbase, said:” We believe that this is an important step towards our commitment to making cryptocurrency accessible to everyone. UK customers will benefit from faster, safer and seamless bank transfers.”
The Fast Payments Scheme is a UK banking initiative aimed at reducing transaction times and is the main infrastructure for money payments currently used in the country. Feroz told Business Insider that supporting the Faster Payments system will allow customers “to see a vastly improved deposit and withdrawal experience.”
Coinbase is attempting to iron out certain issues and has identified the UK as Europe’s Cryptocurrency capital. Feroz also said that the EU’s cryptocurrencies growth has been “twice as fast as any of our other markets in 2017” and the UK is its largest market in the bloc.
Last year Coinbase said that the company plans to grow its London team by roughly eight times by the end of 2018.
We have not heard any comments from Barclays on this deal.
Also read this article for more: https://www.wsj.com/articles/courting-crypto-barclays-breaks-rank-with-coinbase-deal-1521047324