Bitwala integrates custody wallets for even easier, faster and cheaper crypto banking
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The new Wallets make it easier to enter the crypto world, as customers don’t need to hold personal security keys for their crypto assets.
They can be used for trading, storing, depositing and sending Bitcoin & Ethereum.
The new feature makes trading faster and cheaper, as the users do not need to pay blockchain network fees.
The existing non-custodial wallets will still be maintained and are now called Vaults.
To provide the services, Bitwala is working with Solarisbank AG as well as Solaris Digital Assets GmbH, which provide the infrastructure.
Berlin, 13. April 2021 – So-called non-custodial wallets are very popular especially among early day crypto fans. However, in addition to numerous advantages non-custodial wallets also entail a high level of responsibility: those who lose their "private keys" (personal data that grant access to the digital assets on the blockchain) usually also lose their Bitcoin. This has a deterrent effect on new cryptocurrency buyers in particular. Germany's second-largest neobank Bitwala offers the world's first banking service that combines a fully protected German bank account with access to cryptocurrencies, digital assets and blockchain-based finance. In numerous internal studies and user tests, the fintech has found that a large proportion of crypto enthusiasts prefer to entrust the management of their wallets to a service provider. With the integration of Wallets, Bitwala answers this request: Starting today, all Bitwala customers will automatically receive a so-called custody wallet for Bitcoin and Ethereum with their account. The special feature of custody wallets: users do not have to hold their private keys. As of today, the non-custodial wallets are called Vaults and can still be used in the same way as before. New customers can still set up Vaults. Having the choice between Wallet and Vault, Bitwala customers are free to opt for the storage option that suits their individual needs.
Using Wallets, Bitwala customers' private keys are generated and managed within a secure infrastructure in partnership with Solaris Digital Assets. This allows Bitwala to create a seamless customer experience: new customers no longer need to generate a wallet themselves, but immediately have a crypto wallet in the app and can start investing in Bitcoin within minutes. For them, there is also no risk of losing access to their crypto assets, as they can access the new Wallets at any time via their Bitwala account - without keys or backup. Furthermore, trading becomes cheaper and faster with Wallets, as no on-chain transaction is required.
"In recent years, a lot has happened in the field of crypto custody in Germany, both on the technological and regulatory side. With Solaris Digital Assets, we have a strong and experienced partner at our side who supports us in offering our customers an innovative, flexible custody solution. The new set-up also provides the basis to offer our customers innovative features like crypto cashback and crypto savings plans in the future," says Ben Jones, CEO of Bitwala.
"Bitwala's goal is to make the new financial opportunities created by blockchain technology accessible to a broader target group of crypto starters as well as professionals. The launch of Wallets brings us a big step closer to this goal, as it makes it easier to enter the crypto world," says Kristina Walcker-Mayer, Chief Product Officer at Bitwala.
Bitwala provides access to innovative financial products that meet the increasing demands of today's banking customers. No other banking service combines fully protected German bank accounts with access to cryptocurrencies, digital assets and blockchain-based finance. In order to provide legally compliant financial services, Bitwala collaborates with Solarisbank. With Bitwala, customers can invest in cryptocurrency directly from a bank account and earn up to 5% annual return on Bitcoin. The fintech empowers customers to benefit from new financial technology by being the bridge between the old and new financial system.
Based in Berlin, Germany's second-largest challenger bank, now serves over 200.000 customers across 32 European countries. Bitwala was founded in 2015 by Jan Goslicki, Benjamin Jones and Jörg von Minckwitz. Christoph Iwaniez, Philipp Beer and Kristina Walcker-Mayer joined the management team since then. The total team presently consists of more than 100 employees. Bitwala’s investors include Earlybird Venture Capital, coparion, Global Brain and Sony Financial Ventures, G1, High Tech Gründerfonds, ALSTIN, and the Digital Currency Group.