Last year, one of the most talked-about partnerships came when Coinbase partnered with Barclays bank. Before the deal, banks with household names had shunned away from cryptocurrency-related companies. When Barclays agreed to work with Coinbase, this door was opened. This accelerated Coinbase’s dominance in the market, making it the exchange it is today. For Barclays, this meant more deposit and withdrawal fees. Unfortunately, in the last few days, the two have announced the termination of their partnership. It is believed that Barclays bank is the party that chose to end the relationship. The partnership has largely been benefiting U.K citizens wishing to trade with the U.S based crypto exchange.
According to Coindesk, Barclays was concerned with some transactional activities with the crypto exchange. One of Coindesk’s informants indicated that the bank is weary and that its risk appetite has contracted a little. Why now remains unclear. The termination of these deal saw deposits and withdrawals slow down. The exchange has, however, sort a similar partnership with an upcoming bank in the U.K, ClearBank. This will see fiat flows for U.K customers to the exchange go back to normal.
Some Changes For Coinbase That Can Be Expected
While it is clear that operations will not be affected, the exchange can nevertheless experience some changes. In like many situations, some will be positive and others negative. One negative is that the exchange will no longer be associated with one of the most prestigious banks in the world.
When Coinbase was associated with Barclays, this would see many investors place their confidence in the exchange. It would further see the exchange enter into other partnerships with ease. Now, this will be a bit harder. It will remain crucial for the exchange to find a big bank to be associated with.
One of the more positive changes is on the listing of new coins. Barclays will most likely have influenced the coins listed on the exchange. This could explain the small number of listed coins on Coinbase and the slow development of the same. With these shackles off, it is likely that Coinbase will enjoy more freedom and could ramp up its efforts on listing new coins.
In the months to come, we should see some of these changes and possibly more. But with the exchange having so much experience and influence, this change is not expected to deter it from being a top-class exchange.