Bitstamp, the prominent exchange in which Ripple holds a stake, recently announced plans to collaborate with three leading banks in Europe to offer crypto-related services.
This development, revealed by Robert Zagotta, CEO of Bitstamp’s American arm, comes at a time when regulatory landscapes across the globe are diverging, with Europe embracing innovation while the U.S. grapples with uncertainty.
Bitstamp’s Crypto Service
The exchange has gained attention in Europe for its “Bitstamp-as-a-service” product, which provides licensing and technology solutions. These solutions empower banks and fintech firms to integrate cryptocurrency services.
Bitstamp seeks to provide interested banks its services to assist them in offering crypto-related services. While the names of the banks remain confidential, formal announcements could come up in Q1 2024.
Zagotta highlighted a significant uptick in interest from major European banks regarding this offering in the last few months. According to him, Bitstamp is now holding discussions with three of these banks and expects to make an announcement around the first quarter of next year.
Notably, Ripple also seeks to bolster similar partnerships with American banks, but the regulatory uncertainty in the U.S. has impeded this dream. Bitstamp’s prospective partnership demonstrates the difference in regulatory approach between Europe and the U.S.
In Europe, regulatory frameworks, such as Markets in Crypto Assets (MiCA), are paving the way for TradFi institutions to enter the digital asset arena. Meanwhile, in the U.S., stringent regulations have made some established firms reconsider their crypto operations.
Bitstamp’s commitment to regulatory compliance has further endeared it to banks in Europe. In 2019, the exchange received a license from the New York Department of Financial Services (NYDFS). It also undergoes regular audits to ensure adherence to industry standards.
While Bitstamp and its European banking partners explore new horizons, challenges within the crypto industry persist. Zagotta highlighted the importance of maintaining a stable and cooperative market environment.
The Ripple-Bitstamp Relationship
Bitstamp’s strategic moves follow Ripple’s stake acquisition. In May, Ripple procured a significant stake in Bitstamp, cementing its role as a key player within the exchange. This stake was previously owned by investment firm Pantera, as previously reported by The Crypto Basic.
Interestingly, Ripple and Bitstamp have had a partnership since 2017. This came from a comment by Jean-Baptiste Graftieaux, Bitstamp’s CEO, shortly after Ripple acquired the minority stake.
It remains to be seen how Bitstamp’s upcoming partnership with top European banks will affect Ripple’s position and its goal to work with these institutions. Ripple has already indicated interest in expanding into Europe amid the MiCA regulation.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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