A cryptocurrency broker is a company or individual that operates as a middleman between cryptocurrency exchanges and individuals, enabling them to buy and sell cryptocurrencies. These brokers collaborate with banks and cryptocurrency exchanges to provide liquidity and access to hundreds of trade pairs with low bid/ask spreads.
Like traditional banks, crypto banks are financial entities that offer standard banking operations such as deposits and withdrawals, lending, saving, and investing in various markets and instruments. Additionally, however, crypto banks have integrated cryptocurrency into these financial tasks and acquired legitimacy in the eyes of local financial market regulators.
In June 2021, a major acquisition was announced by Deutsche Börse Group. The group acquired a majority share in the crypto broker Crypto Finance for a moderate three-digit sum, expanding its digital asset offering by providing a direct entry point for investments.
In January 2022, the two major Swiss crypto banks, SEBA and Sygnum, announced new raises of $110 million and $90 million respectively, showing investors’ confidence in crypto banking.
Giant service providers such as PayPal have started to provide crypto services, and many others are exploring integration.
Many governments, including the US, are evaluating CBDCs and the regulation of digital asset classes.
