Australian neo-bank Volt has partnered with BTC Markets (BTCM) to provide the cryptocurrency exchange with banking capabilities.
BTCM, which has around 325,000 Australian customers, will now be able to offer its users access to a corporate cash management account with real-time notifications and payment automation.
In the coming months, the exchange will invite its customers to open Volt bank accounts for real-time trading, the companies said.
Deposits in Volt accounts are actually covered by the protection of a maximum of A$250,000 (roughly $186k) per account holder under the Financial Claims Scheme, added the firm.
This is the first-of-its-kind deal in the country which could help neo-banks break into the banking market with low-cost offers. Australia is currently dominated by the “Big Four” banks Commonwealth Bank of Australia, Westpac Banking Corp, New Zealand Banking Group, and National Australia Bank, which collectively control nearly 80% of the market.
Earlier this year, Australia’s banking watchdog, the Australian Prudential Regulation Authority (APRA), initiated stricter requirements for companies seeking banking licenses. Further increasing the scrutiny of new entrants in the market, it highlighted concerns around “neo-banks.”