Bitwala has announced plans to launch a full banking service designed to bridge the gap between cryptocurrencies and traditional finance. The company said it is building an online bank account product intended to offer users a smoother way to move between crypto assets and fiat money, combining standard banking functions with access to the digital asset economy.
According to the company, the new service is expected to be introduced in the coming months, and prospective customers can already pre-register. The planned account will include a German IBAN, a BIC, and a real Mastercard debit card. Bitwala also said that its application with Germany’s Federal Financial Supervisory Authority, BaFin, is still pending. If the application is approved, customer funds would fall under the German banking deposit guarantee framework, providing protection of up to €100,000, or roughly $123,000.
Aiming to Connect Crypto and Everyday Banking
Bitwala framed the new product as a crypto-friendly banking solution for users who want both security and convenience. In its description, the company said the account is meant to combine the features of traditional banking with the needs of crypto users. That means customers would not only be able to buy and sell cryptocurrencies, but also use the same account for daily financial activities such as managing expenses and setting up direct debits.
The broader idea behind the launch is to reduce friction between fiat and crypto. Instead of forcing users to rely on separate platforms for banking and digital assets, Bitwala appears to be building a single service layer where both functions can coexist. For a market that has often struggled with unstable banking access, that positioning is significant, especially in a regulated European setting.
The company said it currently has more than 57,000 users across more than 200 countries. While Bitwala did not disclose further operational figures in the announcement, that user footprint suggests the company sees meaningful demand for products that connect regulated banking infrastructure with crypto functionality.
Debit Card to Replace the Older Prepaid Card Model
A major feature of the upcoming account is the attached debit card. Bitwala said the new accounts will come with a contactless debit card directly linked to customer balances, allowing users to spend funds instantly in shops, online, and at ATMs. The company added that balances held in the account would be immediately available through the card.
Bitwala also contrasted the new card with the prepaid cards it previously offered. According to the company, the debit card model is expected to deliver lower fees and higher spending limits than the earlier prepaid solution. That distinction matters because prepaid crypto-linked card programs have historically depended heavily on third-party issuers and card network relationships, which can create operational fragility.
By moving toward a more integrated bank account and debit card structure, Bitwala is signaling that it wants greater stability and a more conventional financial setup for customers. If the product launches as described, users would be dealing with a fuller banking relationship rather than a narrower spending tool layered on top of a crypto service.
The Background: Suspension of Bitwala’s Prepaid Visa Cards
The announcement follows a difficult period for Bitwala’s earlier card business. The company had previously offered euro-denominated prepaid cards issued by Wavecrest Holdings Limited. However, on January 5, Bitwala said those prepaid cards had been disabled after Wavecrest was instructed by Visa Europe to suspend all Bitwala cards immediately.
In comments cited by CNBC, Visa said it had terminated Wavecrest from its network for violating Visa’s operating regulations. Visa also confirmed that it had required Wavecrest to shut down its Visa card products, some of which were connected to cryptocurrency wallets.
Bitwala was not alone in being affected. Wavecrest had provided similar services to other crypto companies including Cryptopay, Wirex, and Tenx. As a result, multiple crypto-linked card programs were disrupted at the same time, underlining how dependent many firms were on a small number of card issuers and payment partners.
Why the New Banking Model Matters
Viewed in context, Bitwala’s new initiative is more than a routine product upgrade. It represents an effort to move away from the limitations of the prepaid card model and toward a more regulated banking framework. The promise of a German bank account, a locally recognized payments identity through IBAN and BIC, and deposit protection of up to €100,000 gives the project a stronger institutional profile than the company’s earlier card offering.
For users, the appeal is straightforward: a single account that can potentially support crypto trading, fiat transactions, card spending, and everyday banking tasks under a regulated structure. For Bitwala, the benefit would be greater resilience, especially after the disruption caused by the Wavecrest suspension.
Much still depends on regulatory approval. Bitwala made clear that its BaFin application remains pending, and the deposit guarantee would only apply once the product is operating within the approved framework. Still, the company’s direction reflects a broader trend in the crypto sector: firms are increasingly trying to secure more direct and durable links to the regulated financial system rather than relying exclusively on outsourced card arrangements.
If approved and launched as planned, Bitwala’s new service could become an important example of how crypto-focused companies seek to integrate with mainstream banking infrastructure in Germany and across Europe. The rollout would also test whether there is sustained customer demand for an account that treats crypto activity not as a separate niche product, but as part of an everyday banking experience.