Volt, Australia’s first neobank, partnered with local crypto exchange BTC Markets (BTCM) to include digital assets in its integrated banking services. The partnership started on September 6, and is considered a first-of-its-kind deal in the country.
Under this deal, BTCM users can access corporate cash management services through Volt. This helps users to properly manage their Australian dollar funds. Moreover, it allows users to utilise real-time notifications through their BTCM accounts.
‘It gives stability to our clients and builds out a key piece of market infrastructure, which is vital to our industry development,’ said BTCM CEO Caroline Bowler to Cointelegraph
Bowler also said that partnering with Volt enables the exchange to stay at the forefront of a rapidly growing industry, as reported in the official press release posted on BTCM’s website.
‘Greater stability will arise out of this first-of-its-kind relationship between a bank and a crypto exchange in Australia’, Bowler said.
The BTCM CEO also added that this deal will generate customer confidence when it comes to accessing their funds since this is critical in a dynamic industry such as crypto.
Andrew Clouston, Volt’s chief customer and partnership officer, also shared his enthusiasm for teaming up with BTMC for this deal.
‘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,’ Clouston stated.
Around 325 thousand Australian customers with BTCM accounts can have access to Volt’s integrated banking services. In the coming months, it’s expected that BTCM will invite its customers to open Volt accounts to fully optimise the real-time trading features.
This deal came from the rising need for proportionate regulations in the Australian crypto sphere to protect investors without stifling innovation.
BTCM assures that users depositing their investment through Volt are covered with financial protection of up to a maximum of AU$250 thousand per account holder under Australia’s Financial Claims Scheme.
However, warnings on crypto exchanges by financial regulators led to the reluctance of traditional banks to engage in crypto activities.
Last August, the Australian Securities and Investments Commission (ASIC) warned investors of engaging in crypto activities from unlicensed entities. The institution cited the significant loss of profits from citizens that engaged in crypto financial products such as futures and leveraged tokens.
Moreover, traditional Australian banks were also accused of ‘de-banking’ crypto in a recent senate inquiry last July 2021 wherein fintech companies aired grievances that local banks frequently decline payment services to crypto operators.
These de-banking policies also restricted crypto owners from withdrawing assets from local Australian banks. With this, the Volt-BTC partnership offers an alternative platform for payments and investments that follows regulations set by the Australian financial institutions.
‘Innovative partnerships like this one with BTCM are further testament to the way neobanks like Volt will lead the future of Australian banking, providing integrated financial services and better outcomes for Aussie consumers,’ said Clouston.
Bowler also added that this deal will show that the industry is progressing towards a financially inclusive future where crypto sits alongside mainstream finance.
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