Bitpanda, a European-based FinTech platform, has divided into two separate entities and has raised $33m in funding.
As part of this move, Bitpanda Pro, the firm’s cryptocurrency exchange segment, will rebrand itself as an independent entity now named One Trading.
This ambitious move by One Trading is bolstered by securing $33m in a recent funding round. The investment was led by Peter Thiel’s Valar Ventures, with contributions from MiddleGame Ventures, Speedinvest, Keyrock, and Wintermute Ventures.
Initially established as a cryptocurrency broker and exchange, Bitpanda gradually incorporated other trading features, such as the ability to purchase and sell stocks, ETFs, precious metals, and commodities. As it continued to evolve, Bitpanda began partnering with other FinTech startups, enabling them to offer stock and crypto trading in their applications. Examples of this collaborative approach are Lydia and N26, who selected Bitpanda as their white-label trading partner.
The firm also launched Bitpanda Pro, a crypto exchange service tailored for institutional investors and businesses looking for large order handling or trading through bots and the firm’s API. As part of the recent split, this branch of the business is transforming into the independent entity, One Trading. While the company will continue to offer crypto trading, it will operate as a broker, serving as an intermediary between customers and various markets.
The new funding will be utilised to establish One Trading as a market leader for sophisticated retail and institutional customers. Joshua Barraclough, CEO of One Trading, emphasised the importance of the split, saying, “Bitpanda and Bitpanda Pro are separating so that they can build out a market leading product for sophisticated retail and institutional customers, with the right focus and investment to be successful.”
Isolating Bitpanda from the crypto exchange activities seems a strategic move to ensure Bitpanda’s longevity. The company now faces fewer regulatory hurdles than One Trading, which plans to offer derivatives. Bitpanda Pro has so far been a relatively passive player in the crypto exchange space. However, Barraclough remains optimistic about One Trading’s future prospects, aiming to “become a utility for large liquidity providers to exchange unlimited amounts of risk.”
Before the split, Bitpanda has already garnered considerable success, raising hundreds of millions of dollars and attracting millions of users across Europe.
Keep up with all the latest FinTech news here.
Copyright © 2023 FinTech Globa
