Can You Hold Cryptocurrency in a Multi Currency Neobank Account

As neobanks continue to disrupt traditional banking, many users wonder whether they can hold cryptocurrency directly in a multi currency neobank account. The answer is nuanced: most multi currency neobanks are designed primarily for fiat currencies like USD, EUR, and GBP, but a growing number now integrate crypto trading or custody features. This article explains the current landscape, key differences, and practical considerations for users who want both fiat and crypto in one place.

Understanding Multi Currency Neobank Accounts

Multi currency neobanks are digital-only platforms that allow you to hold, send, and receive multiple fiat currencies in a single account. They typically offer competitive exchange rates, low or no monthly fees, and instant transfers. Examples include Revolut, Wise, N26, and Monzo. These accounts are ideal for travelers, expats, and businesses dealing with international payments.

• Hold multiple fiat currencies simultaneously
• Convert between currencies at interbank or near-interbank rates
• Often provide local account details for different countries
• Regulated as e-money institutions or banks in their jurisdictions

Can You Hold Crypto in These Accounts?

Strictly speaking, traditional multi currency neobank accounts do not allow you to store cryptocurrencies like Bitcoin or Ethereum. However, some neobanks have expanded their offerings to include crypto trading or custody as a separate feature within the same app. It's important to distinguish between:

Fiat Wallets vs. Crypto Wallets

A multi currency account holds fiat balances in a custodial manner, typically protected by deposit insurance schemes. Crypto holdings, when offered, are usually held in a separate crypto wallet or custodian account that is not covered by deposit protection. The neobank acts as a broker or exchange for crypto, not a traditional bank for digital assets.

Neobanks That Offer Crypto Features

Several major neobanks have introduced crypto capabilities:

• Revolut, Allows buying, selling, and holding a range of cryptocurrencies within the app. Crypto can be stored in Revolut's custodial wallet, but you don't control the private keys.
• N26, Previously offered crypto through a partnership with Bitpanda, but availability varies by region and may have changed. Check current features.
• Wise, Does not support crypto holding; strictly focuses on fiat.
• Monzo, No crypto features as of now.

Even where crypto is available, it is usually limited to major coins like Bitcoin and Ethereum, and not all multi currency features apply to crypto balances. For instance, you may not be able to earn interest on crypto or use it for spending directly from the account without converting to fiat.

What to Consider Before Using a Neobank for Crypto

Before holding crypto in a neobank, evaluate the following:

• Fees, Crypto transactions often incur spread fees (markup on market price) and withdrawal fees. Compare with dedicated exchanges.
• Security, Neobanks use standard security measures, but crypto custodial wallets are not insured like fiat deposits. Private keys are held by the neobank, not you.
• Regulation, Crypto services may be subject to different regulations (e.g., MiCA in Europe) and may not be available in all countries.
• Integration, You cannot usually send crypto directly to an external wallet from a neobank without conversion. Some allow transfers, but often with restrictions.
• Deposit Protection, Fiat balances may be covered up to certain limits (e.g., 100,000 EUR under EU deposit guarantee schemes), but crypto is not.

Alternatives for Holding Crypto Alongside Fiat

If you need robust crypto storage and multi currency fiat management, consider a hybrid approach:

• Use a dedicated crypto exchange or wallet (e.g., Coinbase, Binance, MetaMask) for long-term crypto holdings.
• Fund your neobank account via fiat transfers and use it for everyday spending and currency conversion.
• Some neobanks allow you to link external wallets or automate transfers, but this is not yet common.
• For advanced users, multi-currency accounts with integrated crypto exchanges like Crypto.com or Wirex offer both in one platform, but often with higher fees.

In summary, while you cannot directly hold cryptocurrency in a traditional multi currency neobank account, a few neobanks have added crypto trading as a supplementary feature. For most users, keeping fiat in a neobank and crypto in a dedicated wallet or exchange remains the safest and most flexible solution.