Coinbase is a popular cryptocurrency exchange that allows individuals to buy, sell, and store various cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and more. The platform offers a variety of services, including trading, portfolio tracking, and payment processing, among others. As a financial services provider, Coinbase relies on banking partnerships to offer its customers the ability to deposit and withdraw funds in fiat currency. So, what bank does Coinbase use?
To provide its customers with access to banking services, Coinbase partners with several financial institutions in different regions. These institutions include:
- Metropolitan Commercial Bank: In the United States, Coinbase works with the Metropolitan Commercial Bank, a New York-based commercial bank. The partnership allows Coinbase to offer its US customers the ability to buy and sell cryptocurrencies with their bank accounts.
- ClearBank: In the UK, Coinbase partners with ClearBank, a challenger bank that offers wholesale banking services to financial institutions. The partnership enables Coinbase to provide its UK customers with access to Faster Payments, a UK payment system that allows for near-instant transfers.
- JP Morgan: In April 2021, Coinbase announced that it had secured a banking relationship with JP Morgan, one of the largest banks in the world. The partnership allows Coinbase to process wire transfers, which is essential for larger transactions and withdrawals.
- Banco Santander: In Europe, Coinbase has partnered with Banco Santander, a Spanish multinational commercial bank. The partnership enables Coinbase to offer its European customers access to SEPA (Single Euro Payments Area) payments, which allow for low-cost cross-border transfers in Euros.
It’s worth noting that Coinbase also has its own banking license in Europe, which allows it to offer its customers certain banking services directly. This license was granted by the Central Bank of Ireland in 2020.
In conclusion, Coinbase partners with several banks to provide its customers with access to fiat currency services. These partnerships allow Coinbase to offer a range of payment options, including wire transfers, Faster Payments, and SEPA payments, depending on the region. By working with reputable financial institutions, Coinbase is able to offer its customers a reliable and secure platform for buying, selling, and storing cryptocurrencies.
