Neobank Volt and BTC Markets have teamed up for an Australian-first partnership between a neobank and a digital currency exchange.
It follows Volt's recent partnership with Railsbank and AFG as it continues to roll out its banking-as-a-service strategy.
The partnership will provide banking services to BTCM initially via access to a corporate cash management account with real-time notifications and automatic payments.
In the coming months, the crypto exchange will invite its customers to open Volt bank accounts.
Then, instead of depositing into BTCM trust accounts, BTCM customers will use their own Volt accounts embedded within the BTCM environment.
Deposits in Volt accounts protected up up to a maximum of $250,000 per account holder under the Financial Claims Scheme.
The partnership follows a recent Senate inquiry where cryptocurrency operators argued that Australian banks were denying them core banking services.
Volt said the partnership demonstrates how BaaS can provide much-needed innovation and access to banking solutions for fintechs and their customers, and improve competition in Australian banking.
“We’ve been particularly interested to see digital currencies grow in popularity, credibility, and security over the past few years. We believe BTC Markets and Volt are primed to deliver safe and secure banking access to support Australians seeking to trade in digital assets," said Andrew Clouston, Volt's head of customers and partnerships.
"As Volt continues to scale with BaaS partners such as Railspay, AFG, Australian Mortgage, and QPay, we are seeing rapidly-growing demand for scalable banking solutions that can be delivered seamlessly within the ecosystem of fintechs."
Instant access to dollars
BTCM chief executive Caroline Bowler added that the partnership means BTC Markets can offer its customers more speed, stability, and confidence when transferring funds.
“Increased speed will result from our customers gaining almost instant access to Australian dollars for trades through native and integrated banking solutions such as bank accounts. Greater stability will arise out of this first-of-its-kind relationship between a bank and a crypto exchange in Australia,” she said
“Both of these factors will generate customer confidence that their funds are in place and available and that they will be able to time the market far more easily - which is critical in such a dynamic industry as crypto.”
Bowler concluded that the partnership demonstrates Australia is progressing in the right direction of a financially inclusive future where crypto sits alongside mainstream finance.
BTCM has 325,000 Australian customers that have so far traded $17.1 billion in digital assets.