According to CoinDesk, Bitstamp’s Global Chief Commercial Officer and CEO of its US division, Robert Zagotta, revealed that the exchange is in advanced negotiations with three “household name” banks in Europe. He did not disclose the names of the banks, but said that announcements regarding the partnerships are expected in the first quarter of 2024.
Bitstamp offers a “Bitstamp-as-a-service” solution, which provides white-label licensing and technology solutions for banks and fintech firms to offer crypto trading and investment services to their clients. Zagotta said that Bitstamp has seen increased demand for this service in Europe, especially after the MiCA proposal was published in September 2020.
MiCA: A Regulatory Boost for Crypto in Europe
The MiCA framework is part of the European Commission’s Digital Finance Package, which aims to create a common set of rules for crypto assets across the EU. The framework covers various aspects of crypto regulation, such as licensing, governance, consumer protection, market integrity, and supervision.
The MiCA framework is expected to come into force by 2024, and will create a level playing field for crypto service providers in Europe. It will also provide legal certainty and clarity for crypto users and investors, as well as foster innovation and competition in the crypto space.
Zagotta said that the MiCA framework has boosted the confidence of traditional financial institutions in crypto, as it provides a clear and harmonized regulatory environment. He said that Bitstamp is well-positioned to help these institutions enter the crypto market, as it has been operating since 2011 and has obtained licenses and audits from various jurisdictions, including the US, Luxembourg, and Japan.
Bitstamp Eyes Perpetual Swap Product in Europe
In addition to partnering with European banks, Bitstamp is also working on launching a fully regulated perpetual swap product in Europe. A perpetual swap is a type of derivative contract that allows traders to speculate on the price movements of an underlying asset without an expiry date.
Zagotta said that Bitstamp has witnessed a growing demand for a perpetual swap product in Europe, especially from institutional and professional traders. He said that Bitstamp is actively working on developing this product, which will be compliant with the MiCA framework and other relevant regulations.
Bitstamp’s cautious and regulatory-compliant approach seems to be paying off, as it has been able to attract more corporate clients and institutional investors. Zagotta said that Bitstamp has seen a significant growth in its corporate onboarding in 2023, and expects this trend to continue in 2024.