London Block Exchange is the largest cryptocurrency provider in the UK, and now it looks decided to team up with ClearBank, also an UK-based bank.
ClearBank is a new and innovative UK-based clearing bank which set the goal to come up with modern standards regarding transparency and market competition. In this regard, its clients can transact faster, more cost-efficient, and more transparent, in comparison to the traditional banking systems. ClearBank works with e-payments, liquidity controlling, agency banking, and transactions banking.
The concept of clearing banking is somewhat new and, according to InvestorWords, a clearing bank is “a commercial bank that is part of a network of banks that can clear checks for its clients regardless of whether or not the check originates from the same commercial bank.”
Recently, in a report published by Reuters, two sources close to London Block Exchange and ClearBank affirmed that the two firms met up and are ready to partner up to merge the cryptocurrency payments with clearing banking.
London Block Exchange is ready to deal with ClearBank, an UK-based clearing bank
“This will make it easier for British customers of the exchange to buy and sell cryptocurrencies by making transactions faster and cheaper,” the Reuters report reads, citing one of the sources.
If this partnership will eventually happen, then it would be the first partnership between a cryptocurrency provider and a regulated bank, be it a clearing bank one. Typically, banks are ditching blockchain technology from the start, fearing of the possible frauds and money laundry both characteristics describing a big part of the crypto-verse, unfortunately.
On the other hand, the possible London Block Exchange partnership with ClearBank would benefit the British customers, whether they are crypto enthusiasts or not. Accordingly, that is beneficial because would speed up the transactions and reduce the fees.
Last but not least, this movement would benefit the cryptocurrencies market because the crypto adoption might increase.
Jackson Bey was born and raised in Lethbridge Alberta but moved east when he was 22. Apart from running his own consulting firm. Jackson spends his time canoeing the many lakes of Ontario. As a financial journalist Jackson has published stories for CBC Business Online, as well as Buzz Feed and Motherboard. As a contributor to Billionaire 365, Jackson mostly covers markets and trade.