N26, a $9 billion European digital bank, is launching bitcoin and cryptocurrency trading services, according to a CNBC report.
N26 Crypto, the bank’s new service, is expected to roll out to Austrian customers over the next few weeks and initially include bitcoin and a number of cryptocurrencies. After its initial release, N26 plans to expand its service offering to customers in other markets over the next six months.
However, users looking to leverage N26’s service should note that the bank does not support custodial wallet transfers, which means users will not be able to move their bitcoin out of the platform.
Additionally, users looking to buy bitcoin on the platform will simply need to access their online account, click on bitcoin, and the money needed for the transaction will be deducted from the user’s main account. N26 customers will also be able to transfer funds interchangeably between their main accounts and their digital asset wallet.
The bank charges a 2.5% fee on buy and sell orders for all cryptocurrencies, but customers wishing to trade 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 bitcoin trading drops to 1%.
The functionality of the crypto trading services is provided by Bitpanda, an Austrian cryptocurrency and stock trading app backed by Peter Thiel. The partnership allows Bitpanda to pocket a commission for each transaction and N26 has indicated that it plans to expand its tradable assets in the future.