Bitcoin.de, a Germany-based bitcoin exchange, has completed its integration with Fidor Bank in creating “Express Trade” accounts. Users will now be able to trade with fiat directly out of their bank accounts, without having to deposit funds at an exchange’s financial institution.
This also entails the immediate settlement of all trades: the fiat proceeds of a sale are immediately credited into the seller’s bank account, likewise with the bitcoins purchased, which are transferred to the buyer’s wallet.
This as opposed to the traditional routine: Funds/bitcoins are deposited with an exchange’s financial institution/wallet; Trades are executed and recorded, with the funds remaining under the custodianship of the exchange until manually withdrawn by the parties to a trade.
The new feature took one and a half years of development. Fidor first partnered with Bitcoin.de in July 2013 to embark on a project enabling real-time trading out of a Fidor giro account. As part of the partnership, Fidor would support Bitcoin.de’s AML/KYC needs.
Legal Risk Factor Beneath Ripple’s Lawsuit from SECGo to article >>
In essence, the new feature restores the “traditional way” of trading, where counterparties would settle their deal on the spot. But it also taps the advantages of involving a trusted third party, such as the assurance that a counterparty’s assets actually exist and are accessible.
Perhaps most importantly for bitcoin trading–an industry hitherto fraught with hackings, theft and insolvencies–funds remain outside the care of a third party. The launch therefore taps the benefits of Bitcoin 2.0’s prototype for decentralized trading, which has yet to become mainstream. This can also raise the bar in the broader FinTech discipline. Said Oliver Flaskämper, board member of Bitcoin Deutschland AG, the entity operating the exchange:
“We are proud that we at Bitcoin.de have been able to develop further together with our bold partners from FIDOR Bank towards an exchange. That is not only good news for all Bitcoin fans, but also good news for fin-tech companies based in Germany. Together with the right partners more is possible in Germany than one might think.”
Fidor has become one of the friendliest banks for digital currency. Until now, most of its contact with digital currency has been less direct, save for its adoption of Ripple for interbank transfers. The launch thus brings Fidor closer to digital currency that it has ever been.