The UK-based branch of Coinbase exchange, Coinbase UK has reintroduced its fast deposits and withdrawal services in the country. The exchange pulled this off by becoming a client of ClearBank, a banking startup. A report unveiled this news on September 3, noting that the exchange also listed four new crypto coins for its UK-based clients.
According to the report, this move has seen Coinbase UK resume its operations at full speed. Founded two years ago, ClearBank is a participant in the UK Fast Payments Scheme (FPS). As such, the bank will expedite the process of making deposits and withdrawals on the exchange once again.
The exchange’s CEO, Zeeshan Feroz confirmed that clients can withdraw and deposit fiats in 60 seconds again.
It’s a very nascent industry that is broadly unregulated so the challenge a traditional bank has is crypto doesn’t fit into one of its existing models for other industries,
He added that,
Understanding the crypto space and how you manage the risk requires a significant amount of investment and resources. As we look at the long term, that gap between crypto and traditional banks will be bridged.
Leading Banks Have Reservations Towards Working with Crypto Firms
Coinbase UK initially opened a fast payments account with Barclays in the past year. This banking relationship created a lot of buzz in the crypto sector because Barclays became the first major bank to accept a crypto startup as a client.
However, this banking relationship did not last long as Barclays cut ties with the exchange in August this year. The bank did not give any reason for ending the relationship. According to a report, this relationship was not meant to last because it was either a pilot or because it was only a matter of time before the bank’s appetite for taking big risks contracted.
Following this move, Santander UK, another big bank in the country also ended its relationship with Coinbase UK.
This news comes after Coinbase continues expanding its offering for its UK-based clients. The exchange has added four new crypto coins to its list of supported digital currencies. The newly added coins are basic attention token (BAT), 0x, Augur (REP), stellar lumens (XLM), and ripple (XRP).
Apart from this, Coinbase also rolled out staking services in the US for crypto enthusiasts holding USDC. Dubbed “USDC Rewards” this staking service aims to increase USDC adoption in the US. All enthusiasts holding USDC in their accounts would earn a 1.2 percent interest annually.
Do you think Coinbase UK’s restoring its fast payments system will have an impact on the crypto market as we head into the weekend? Let us know in the comments below.