Crypto exchanges have been increasingly striking deals with Banks to open accounts and allow the option of fiat trading to their clients. After Binance, London Block Exchange is reportedly have stricken one such deal.
London Block exchange planning a deal with ClearBank
Cryptocurrency exchanges are increasingly making deals with banks to offer their customers the option to trade against fiat. Recently, Binance announced that it is going to provide the Euro-crypto pairings. It is also opening a registered exchange that would allow it to offer British-pound as well.
At the end of last month, Bittrex also announced the introduction of US Dollar trading while Coinbase made a deal with the Barclays to open a bank account months back.
The latest addition in this increasingly rising list of crypto exchanges is reportedly UK-based London Block Exchange (LBX). As reported by Reuters, the exchange which is also a known digital wallet provider, has struck a deal with British start-up ClearBank to open a bank account.
According to the people familiar with the matter, with this deal, the crypto exchange will be able to allow “domestic customers to trade digital currencies without moving their money overseas.”
Launched in 2017, ClearBank is a purpose-built clearing bank by Nick Ogden. He is also the founder of payments group Worldpay. ClearBank was set up with the aim to be a clearing bank offering services to fintech firms, credit unions and building societies with retail banking needs.
Offering more liquidity to the crypto market
The media source quotes one of the unnamed people that have the knowledge of the agreement,
“This will make it easier for British customers of the exchange to buy and sell cryptocurrencies by making transactions faster and cheaper.”
In March, the London Block Exchange said that it would offer its clients on-shore accounts and access to the Faster Payments Service. This is a network which is used by the traditional financial industry.
Both the exchange and ClearBank declined to comment on the matter, as reported by the Reuters.
Traditional institutions have been keeping away from the companies that deal with bitcoin among other digital currencies due to the lack of regulatory clarification and money laundering concerns.
These issues led the companies handling the cryptocurrencies to open their accounts in other countries like Gibraltar, in this case out of Britain. They also need to transfer their pounds into euros or some other currencies.
The rising partnerships of crypto exchanges with banks is a good thing for the crypto investors and the market as it provides the liquidity.
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Sahitya is a crypto enthusiast. He is a specialist on management and strategic planning for over 5 years.