N26, the German neobank headquartered in Berlin, announced on Thursday the launch of a new cryptocurrency trading product dubbed N26 Crypto. Austrian customers will be the first to test new functionalities via the N26 App, while other markets will be gradually added in the upcoming months.
N26 Crypto offers access to almost 200 cryptocurrencies , including the biggest names in the crypto industry. Company officials have confirmed that the newest release addresses strong local demand; 40% of current neobank clients are interested in crypto assets or are already actively buying and selling cryptos.
N26 clients who are not Austrian residents are being asked to be patient, as new jurisdictions and markets will be announced in the next six months.
“The N26 banking experience has always been built around the customers’ needs, with features that make money management easy. With N26 Crypto, we have created a simple, intuitive product that integrates seamlessly into N26’s fully-regulated banking experience where one’s bank balance, savings, and investment portfolio sit side by side – with cryptocurrencies being the first asset class we intend to offer,” Gilles BianRosa, the Chief Product Officer at N26, said.
The cryptocurrency offering was prepared by a partnership with the crypto company, Bitpanda GmbH, which recently opened its new headquarters in Austria. Bitpanda will be responsible for custodian services and trades execution.
Challenger Bank Tries to Catch Up with Bigger Players
Although neobanking companies are commonly associated with new technologies and innovative products, N26 lags behind its competitors, even the more traditional ones, as a latecomer to the recent crypto rush.
Fintech companies like Revolut and PayPal added cryptos to their offering a long time ago, while payment giants like Mastercard and Visa have also located themselves within the web3 industry.
The timing of N26’s decision to join the cryptocurrency market could have been better. Main assets have been falling for the last 12 months, and year-to-date, losing more than 50%. Bitcoin (BTC), the oldest and the biggest crypto asset, is currently trading at around $19,000, while in October 2021, its price was three times higher.
N26 was founded in 2013 and launched its first product in 2015. Currently, the firm operates in more than 25 markets, servicing five million customers worldwide. Since the last funding round, it has retained its valuation of $3.5 billion.
