Open Banking and Crypto Converge as Coinbase, Tink Launch Germany Service

Coinbase Global Inc (COIN) and Tink, a Visa-owned open banking platform, have launched a new payment feature in Germany that allows users to buy and sell cryptocurrencies directly from their bank accounts using the "Pay by Bank" system. The initiative, announced in late October 2025, reflects a strategic push by Coinbase to align with Europe's growing open banking infrastructure and expand access to digital assets in a market where 99% of adults hold bank accounts.

The service eliminates the need for users to enter card details or manually input banking information. Instead, funds are transferred instantly via a direct connection between the user's bank and Coinbase's platform. Transactions are authorized through the user's online banking portal, leveraging multi-factor authentication required under the EU's Strong Customer Authentication (SCA) regulations. This approach reduces reliance on traditional card networks and enhances security by ensuring Coinbase does not access users' banking credentials.

Germany's regulatory environment, overseen by BaFin, provides a favorable backdrop for the rollout. As a licensed entity in the country, Coinbase Germany GmbH can operate with confidence in compliance. The partnership with Tink-a firm that supports over 3,400 banks across 18 European countries-enables seamless integration with major German financial institutions. Tink's technology, already used by platforms like PayPal and Revolut, powers the direct account-to-account transfers.

Denny Morawiak, Managing Director of Coinbase Germany, emphasized the initiative's alignment with the company's broader European strategy: "The partnership with Tink is the latest step in making it easier to securely access the crypto economy. It underscores our commitment to being the most trusted and compliant offering in the German market." Thomas Gmelch of Tink added that the feature offers users "more choice in how they manage their crypto purchases," enabling quick, secure transactions on mobile devices.

The launch is part of a broader trend of fintech and crypto firms integrating open banking solutions to streamline transactions. By adopting Pay by Bank, Coinbase reduces exposure to credit card processing fees and accelerates settlement times, improving internal capital flow. For Tink, the partnership reinforces its role as a bridge between traditional finance and emerging digital asset markets.

The move also signals a shift in user expectations for digital transactions. Open banking, once a compliance-driven initiative, is now a competitive differentiator. As adoption grows, the line between crypto-native platforms and traditional finance may blur, fostering a more cohesive financial ecosystem.

While currently limited to Germany, the infrastructure supports expansion into other EU markets. Tink's network spans France, Spain, Sweden, and the Netherlands, among others, suggesting potential for future rollouts. However, Coinbase has not yet announced plans to extend the service beyond Germany.

The partnership underscores the accelerating convergence of open banking and crypto adoption. As regulatory frameworks like the EU's PSD2 continue to evolve, similar integrations could become standard in the crypto industry, reshaping how users interact with digital assets.