Australian online bank Volt signs partnership with BTC Markets

Australian online bank Volt has partnered with BTC Markets (BTCM) to provide integrated banking capabilities to the cryptocurrency exchange.

According to the company, this is a unique transaction in the country, as deposits to Volt accounts are insured for up to $ 250,000 per customer under Australia’s financial claims program.

The partnership follows news that Swyftx – an Australian cryptocurrency broker – has asked government agencies to review the regulations, but in a way that doesn’t stifle innovation.

Specifically, he sees “de-banking” as an obstacle to success as a crypto business and has also called for a regulatory regime for digital assets.

Caroline Bowler, CEO of BTCM said Counter she believes that this partnership represents “a boost for financial innovation in Australia”.

“The whole process took about three years,” she said.

“It was a commitment from both of us to see this through to the end.”

Volt started offering its services in 2019 after obtaining an unrestricted authorized depository institution license and is now called Australia’s first online bank, or ‘neobank’.

“The first one is always the hardest to do,” Bowler added.

“This partnership shows that it is possible for regulated entities in Australia to partner with the right crypto providers or other fintechs.”

The community is not satisfied with the banks

Volt chief executive Steve Weston explained that the crypto community was not happy with “the games being played by the banks.”

“Crypto is a less contested but increasingly important banking area,” he said.

The neobank model was put in the spotlight after the collapse of Xinja and the acceleration of banking-as-a-service offerings by Westpac, which partnered with Afterpay and Society One, providing the back-end. banking for new digital products.

Volt has a similar bank as a service strategy, effectively leasing its banking license to organizations such as Railspay, AFG, Australian Mortgage, QPay, and now BTC Markets.


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David A. Albanese

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