Coinbase Taps Trustly for Open Banking Payments in Canada

Coinbase has teamed with open banking provider Trustly as it expands into Canada.

The partnership, announced Wednesday (Aug. 16), lets Coinbase users in Canada deposit and withdraw funds from their bank accounts to and from their crypto wallets.

“A robust regulatory framework combined with the world’s third-most crypto-aware nation make Canada a perfect fit for alternative payment methods and innovative financial services,” Trustly said in a news release provided to PYMNTS. 

“With Trustly, Coinbase users will easily connect their bank accounts to their Coinbase account, allowing them to add funds instantly or withdraw funds seamlessly using EFT or Interac payment rails.”

The release notes the growing popularity of crypto options in Canada, where — per a survey by the Ontario Securities Commission — more than 30% of people intend to purchase crypto assets next year. Later this year, Trustly says it will expand on the partnership with Coinbase by enabling direct bank transfers over EFT (electronic funds transfer). 

“By enabling use of the EFT network, users will be able to benefit from seamless deposits, withdrawals, and high-value deposit limits,” the release said.

Coinbase announced its new Canadian effort earlier this week. As PYMNTS noted at the time, the company has been talking about international expansion plans for months as it faced scrutiny from regulators in the U.S. like the Securities and Exchange Commission (SEC).

In May, Coinbase — after getting a license from the Bermuda Monetary Authority — debuted the Coinbase International Exchange. This exchange lets institutional users based in eligible jurisdictions outside of the U.S. trade perpetual futures, which Coinbase said made up for nearly three-quarters of global crypto trading volume in 2022.

Around the same time, Coinbase said it was setting up operations in the United Arab Emirates (UAE), seeing the Middle East as a “strategic bridge” between customers in Europe and Asia.   

“We are looking for a home to set up an international hub that could serve the long tail of countries in the world,” CEO Brian Armstrong told Bloomberg TV.

He added that Coinbase still sees the U.S. as a crucial market and has no intention of leaving the country, despite what the company continues to maintain is a lack of clarity from regulators.

Canada, meanwhile, beefed up its rules for cryptocurrency companies last year in the wake of the collapse of the FTX exchange. 

In February, the Canadian Securities Administrators told unregistered companies they had 30 days to either register with the government or exit the country.

As PYMNTS wrote, Canada’s regulations mandate that platforms must keep Canadian clients’ assets with an appropriate custodian and “segregate these assets from the platform’s proprietary business.” The rules also forbid offering margin or leverage for Canadian customers.