23 June 2018
Register for the webinar today

Barclays propels Coinbase into Faster Payments

14 March 2018  |  10519 views  |  0 Bitcoin

Digital currency exchange Coinbase has been granted an e-money license by the UK’s Financial Conduct Authority (FCA) and joined the Faster Payments Scheme as an indirect member courtesy of a tie-up with Barclays Bank.

While other major lenders shy away from the cryptocurrency markets, Barclays Bank is the first to strike a deal with a major global exchange, enabling the fast settlement of fiat money transfers to UK customers.

The bank has been in active talks with UK regulatory bodies over how it can bring cryptocurrencies into play in the UK, with the granting of an e-money license seen as an essential prerequisite. Barclays struck a similar deal with social payments outfit Circle - which enables sterling, dollar and bitcoin money transfers across popular messaging platforms and other media - shortly after it won approval from the watchdog in April 2016.

Having won over the FCA, Coinbase plans to start with a pilot, giving a small number of institutional users access to Faster Payments before a roll out to all UK customers.

Coinbase first began offering its service to European users in 2014. It says that EU market demand grew twice as fast as any other territory in 2017, with the UK being the most active.

The firm says the e-money license will enable it to pass through regulatory barriers beyond the UK to 23 countries within the EU, although such an arrangement may not withstand a Brexit break in relations between the UK and its continental neighbours.

Coinbase currently has six openings in London for staff in compliance and back-end engineering and plans to grow its headcount 8x by then end of the year.

The US-based firm will not be the only cryptocurrency exchange in the Faster Payment Scheme, with news of a similar opening for home-grown outfit London Block Exchange also filtering through.

Beginning today, LBX is offering a Crypto Payment Account which will enable the instant transfer of GBP to digital currencies. The company has not provided details of the bank sponsor for FPS access.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Coinbase and Visa at loggerheads over erroneous charges on customer crypto accounts

Coinbase and Visa at loggerheads over erroneous charges on customer crypto accounts

16 February 2018  |  11132 views  |  0 comments | 13 tweets | 13 linkedin
Coinbase hires former Twitter exec to lead customer service efforts

Coinbase hires former Twitter exec to lead customer service efforts

23 January 2018  |  3651 views  |  0 comments | 3 tweets
Coinbase investigates insider trading claims

Coinbase investigates insider trading claims

20 December 2017  |  17962 views  |  0 comments | 9 tweets | 5 linkedin
Coinbase targets institutional investors with digital currency storage service

Coinbase targets institutional investors with digital currency storage service

17 November 2017  |  6551 views  |  0 comments | 3 tweets | 6 linkedin
Coinbase raises $100m

Coinbase raises $100m

10 August 2017  |  18292 views  |  0 comments | 15 tweets | 15 linkedin
Barclays talks to FCA about cryptocurrencies

Barclays talks to FCA about cryptocurrencies

26 June 2017  |  10849 views  |  0 comments | 10 tweets | 12 linkedin
Barclays backs UK launch of social payments app Circle

Barclays backs UK launch of social payments app Circle

06 April 2016  |  11321 views  |  1 comments | 11 tweets | 10 linkedin
Barclays signs deals with blockchain startups; Hyperledger wins Innotribe contest

Barclays signs deals with blockchain startups; Hyperledger wins Innotribe contest

14 October 2015  |  10693 views  |  1 comments | 15 tweets | 10 linkedin
Coinbase opens for business in the UK

Coinbase opens for business in the UK

29 April 2015  |  7369 views  |  0 comments | 10 tweets | 9 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit https://secure.vasco.comVisit www.worldwealthreport.comVisit http://go.jumio.com/finextraAd

Top topics

Most viewed Most shared
GPS raises £44 million to fund international growthGPS raises £44 million to fund intern...
26208 views comments | 7 tweets | 8 linkedin
Robots save Nordea from GDPR processing nightmareRobots save Nordea from GDPR processing ni...
9098 views comments | 10 tweets | 17 linkedin
BIS: Cryptocurrencies are an environmental disaster that could break the InternetBIS: Cryptocurrencies are an environmental...
8387 views comments | 18 tweets | 23 linkedin
hands typing furiouslyArtificial Intelligence at the changing fa...
7225 views 0 | 10 tweets | 5 linkedin
Visa says 5.2m payments failed during 10 hour outageVisa says 5.2m payments failed during 10 h...
6257 views comments | 14 tweets | 10 linkedin

Featured job

to GBP £90K base, double OTE (estimate)
London, UK or Europe

Find your next job