Australian neobank Volt has reportedly collaborated with local crypto exchange BTC Markets (BTCM) to offer integrated banking capabilities to the latter.
The bank will offer corporate cash management accounts to users of the crypto exchange to manage their Australian dollar funds. Real-time notifications and payment automation will be offered to these users, stated Reuters.
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This is said to be the first-of-its-kind alliance in the country.
In the coming months, the exchange plans to invite its clients to open Volt bank accounts to trade in real time, added the news agency.
“This means near-instant trading opportunities for our crypto clients, as they can rapidly fund AUD into their BTC Markets account,” BTC Markets CEO Caroline Bowler was quoted as saying by Cointelegraph.
Volt deposits are guaranteed up to $250,000 each customer under the Australian government’s Financial Claims Scheme.
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By GlobalDataWith the Big Four Banks controlling around 80% of the market, neobanks have stepped into the scene with low-cost offerings.
Earlier this year, Australia called for stricter requirements for companies seeking banking licences and monitoring of new entrants.
The Australian Prudential Regulation Authority (APRA) has already started consultation on the new approach for licencing and supervising new authorised deposit-taking institutions (ADIs).
In an information paper outlining the potential changes, APRA said that a restricted ADI needs to achieve a limited launch of an income-generating asset product and a deposit product before securing an ADI licence.
Volt was granted a full licence to operate as an ADI in 2019.
Earlier this year, banking-as-a-service (BaaS) platform Railsbank launched in Australia after securing a partnership with the country’s first neobank Volt.
Volt plans to engage with Railsbank’s global network to enable a broader BaaS solution in Australia, allowing companies to prototype, launch and scale financial products.
