What Caused the Abrupt Dissolving of Barclays’ 15 Month Relationship with Coinbase Crypto Exchange?
Latest reports confirm Barclays has ended its relationship with Coinbase, ending one of the crypto’s most fascinating partnerships, in mysterious circumstances.
The exchange replaced the household bank’s withdrawal and deposit functionalities by opening an account with a rising prodigy in U.K’s banking industry, Clearbank. While no official reports have sufficed we look at possible explanations why the two ended their relationship.
BEG reported in March 2018, a highly publicized partnership between Barclays and top crypto exchange, Coinbase, to connect the latter to the U.K. Faster Payments Scheme (FPS). This allowed U.K customers an instant platform to buy and sell cryptocurrencies on the exchange using the British Pound.
Following the dissolved partnership, U.K customers are witnessing slower transactions using the GBP. As at time of writing, neither company has commented on the matter.
Barclays low risk appetite or a mutual goodbye?
While the cause of dissolving the partnership still remains unclear, one insider familiar with the matter claims the bank’s “low risk appetite” for the crypto industry in general caused the split. He said,
“It is my understanding that Barclays’ risk appetite has contracted a little – I’m not sure exactly why or what’s been driving that, maybe there has been some activity they are not happy with.”
The CEO of a crypto company in the U.K further claims the bank does not have the stomach for any crypto company – at least at the moment. He said,
“But it’s about Barclays’ comfort level with crypto as a whole.”
A mutual goodbye…
However, different reports from Coindesk confirms that the two companies came to a mutual agreement to end the partnership citing the partnership had completed its work. This aligns with the recent developments– such as the addition of several cryptocurrencies – seen at Coinbase in the past few months.
Given the strict regulations that Barclays placed on the listing requirements of cryptos, the exchange is now adding quite a number of tokens on its platform following the split with Barclays. However, Clearbank, is not giving the exchange a freepass as it already sanctioned the removal of privacy coin, ZCash (ZEC) from the platform.
Barclays however have been showing signs of leaving the crypto sector with the bank temporarily closing the cryptocurrency trading desk in late October 2018.