Bitwala has announced plans to launch a new banking product designed to bridge cryptocurrency services and traditional finance, marking a major shift from its earlier prepaid card model. According to the company, the upcoming service will offer a full German bank account alongside a real debit card, though the rollout still depends on approval from Germany’s Federal Financial Supervisory Authority, BaFin.
If that approval is granted, Bitwala says customer deposits would be protected under the German bank deposit guarantee scheme, covering funds up to €100,000. The company is positioning the product as a secure and regulated option for users who want access to both everyday banking tools and cryptocurrency functionality within a single account.
A New Banking Service Built Around Crypto and Fiat Access
Bitwala described the new offering as an online banking account aimed at enabling a smoother transition between the crypto economy and the fiat financial system. The company said the account would combine features associated with traditional banking with services tailored to cryptocurrency users.
According to the announcement, the planned account will include a German IBAN, BIC, and a Mastercard debit card. Bitwala said the product is intended to support daily financial activity while also allowing customers to buy and sell cryptocurrencies. In practical terms, that means users could manage routine payments, spending, and direct debits while interacting with digital assets through the same platform.
The company also said it expects to introduce the new accounts within the coming months. In the meantime, prospective users are already able to pre-register for the service.
User Base and International Reach
Bitwala stated that it currently has more than 57,000 users across more than 200 countries. That global reach is notable for a company now attempting to anchor its next phase of growth in a fully regulated German banking framework.
By highlighting both its user numbers and international footprint, Bitwala appears to be signaling that demand exists for financial products that connect conventional banking rails with crypto-related use cases. The company’s messaging suggests that it sees this hybrid model as a response to customers seeking easier access to both digital assets and regulated financial infrastructure.
Debit Card Replaces the Old Prepaid Structure
One of the most significant changes in Bitwala’s new plan is the move from prepaid cards to a direct debit card linked to the customer’s account. The company said it will issue a contactless debit card that can be used instantly in stores, online, and at ATMs.
Bitwala also emphasized that account balances will be immediately available on the debit card, a feature that could make the product more useful for everyday spending than the company’s previous card setup. It further claimed that the new debit cards will come with lower fees and higher spending limits than the prepaid cards it used to offer.
This matters because card functionality has long been one of the most visible ways crypto-linked financial services reach mainstream users. A debit card connected to a regulated bank account potentially offers a more durable and familiar product than a prepaid card arrangement, especially after the disruptions many crypto card programs faced in the past.
Background: Suspension of Bitwala’s Prepaid Visa Cards
The launch plan comes after Bitwala’s earlier prepaid card service was disrupted. The company previously offered euro-denominated prepaid cards issued by Wavecrest Holdings Limited. However, on January 5, Bitwala announced that those prepaid cards had been disabled.
At the time, Bitwala said Wavecrest had received instructions from Visa Europe to immediately suspend all Bitwala cards. Visa later told CNBC that it had terminated Wavecrest from its network for violating Visa’s operating regulations. Visa also said it required Wavecrest to close its card products, some of which were linked to cryptocurrency wallets.
The issue extended beyond Bitwala. Other crypto companies relying on Wavecrest for similar card services, including Cryptopay, Wirex, and Tenx, were affected as well. As a result, their cards also became invalid, underscoring how dependent many crypto payment services were on third-party card issuers and legacy payment networks.
Why the Regulatory Piece Matters
Bitwala said the new accounts will be fully regulated by BaFin, but the company’s application remains pending. That makes regulatory approval the central factor determining whether the service can move from announcement to execution.
If approved, the product would benefit from the credibility of Germany’s banking oversight framework and from the customer protections tied to the country’s deposit guarantee system. Bitwala specifically noted that funds up to €100,000 would be guaranteed, which it equated to roughly $123,000 at the time referenced in the report.
For users, that protection could help distinguish the proposed service from less regulated crypto-linked financial products. For the company, it could represent a way to rebuild trust and create a more resilient business model after the collapse of the earlier prepaid card arrangement.
A Strategic Reset for Crypto-Linked Banking
Viewed in context, Bitwala’s announcement is more than a product update. It is also a strategic reset following the suspension of its earlier Visa-backed prepaid cards. By moving toward a fully fledged German bank account with an attached debit card, the company is trying to reduce reliance on fragile outsourced card structures and place its offering within a clearer regulatory perimeter.
The product pitch is straightforward: combine standard banking services, direct access to spending tools, and the ability to buy and sell cryptocurrencies in one account. Whether Bitwala can deliver on that vision now depends largely on BaFin’s decision and the company’s ability to transition from a disrupted prepaid model to a more comprehensive regulated banking service.
For now, the company’s message to users is that a more secure and crypto-friendly banking experience is on the way. But until approval is secured, the service remains a forward-looking plan rather than a finalized launch.