Bunq has partnered with Kraken to enter the cryptocurrency market, allowing users to trade over 300 digital currencies. The service launches in several European countries with expansion plans into the U.K. and the U.S. After a recent regulatory issue in the U.S., Bunq is also working toward a U.S. banking permit and will gauge success through customer satisfaction rather than client numbers.
Bunq, the European digital bank, is stepping into the cryptocurrency arena thanks to a new partnership with the U.S. crypto exchange Kraken. The collaboration was revealed on Tuesday, aimed at meeting rising customer interest in crypto investments. Users can set up an account in mere seconds to trade over 300 cryptocurrencies, including big names like Bitcoin, Ethereum, and Solana.
This rollout began in the Netherlands, France, Spain, Ireland, Italy, and Belgium, with Bunq planning to extend this service to other countries in the European Economic Area, as well as the U.K. and the U.S. They’ve already applied for banking licenses in the latter two regions. “Our users across the world have long waited for a simple, safe and straightforward way to invest in digital assets,” said Ali Niknam, Bunq’s founder and CEO, in a recent statement. “Now, everything they need to save, spend and invest — including crypto — is on one platform.”
Bunq is also planning to release a guide to help new users navigate the world of cryptocurrencies, detailing risks and explaining how to start. A Bunq spokesperson communicated this via email to Banking Dive. Just a day after Bunq’s announcement, Kraken launched its new tool aimed at fintechs and banks, designed to give clients seamless access to cryptocurrency trading in just a few weeks amid rising interest in digital assets.
Kraken Embed is the name of this new crypto-as-a-service solution, which assists partners in integrating crypto trading into their platforms. It has reportedly shown its practical impact through the partnership with Bunq, according to Kraken. “Our Crypto-as-a-Service solution enables a wide range of financial institutions to efficiently meet growing client demand without the complexity and overhead of running their own marketplace,” stated Brett McLain, Kraken’s head of payments and blockchain.
Additionally, last month saw Kraken entering a $1.5 billion agreement to acquire the futures trading platform NinjaTrader. This move is seen as a strategy to bridge the gap between traditional finance and the crypto sector, marking the largest transaction thus far between these two industries.
It’s also worth mentioning that the U.S. Securities and Exchange Commission recently dropped a case against Kraken. The case previously accused the company of mishandling billions in customer and corporate funds, claiming it operated as an unregistered exchange and broker.
As the U.S. crypto marketplace anticipates a potential relaxation of regulations, neobanks like Bunq have their sights set on this market. The bank is particularly interested in appealing to digital nomads, expats, and entrepreneurs with connections in both the EU and U.S.
In February of last year, Bunq withdrew its request for a U.S. banking permit due to complications between its Dutch regulatory environment and U.S. authorities. However, they have recently filed for broker-dealer registration in the U.S., marking a step toward obtaining a full banking license.
Cultural differences in banking habits are noted as part of Bunq’s strategy. The spokesperson explained, “In the Netherlands or Germany, people save first, then spend. In the U.S., it’s the other way around: spending on credit first and then paying it off. We’re tailoring our approach to fit how Americans manage money.”
While Bunq’s move into the U.S. isn’t directly linked to its crypto initiatives, both expansions signal growth. Unlike traditional customer acquisition efforts, Bunq intends to measure its success by tracking the Net Promoter Score (NPS) initially. The spokesperson clarified, “If [the NPS is] high, we’ll know we’re on the right path and can start being more ambitious with future releases.”
