Major US cryptocurrency exchange Coinbase may soon become a major sponsor of one of Germany's most decorated football clubs, Borussia Dortmund (BVB). A report by local media, Handelsblatt, says further details on the partnership between the two sides will be finalized by the time the German Bundesliga resumes. It is worth noting that Coinbase and the BVB have been in a partnership since July 2022.
But the exchange's role was limited to offering cryptocurrency training to the football club's staff members. However, the new deal will allow Coinbase to gain publicity on the pitches and perimeter of the club's home stadium, Signal Iduna Park, which is widely considered to be the largest stadium compared to the stadiums of other German soccer clubs.
Secure and regulated exchange in Germany
Another benefit of the partnership is that the club's other marketing channels, including social media, will promote the cryptocurrency. BVB has won several titles in and outside Germany and boasts millions of fans around the world. However, a statement from one of BVB's top executives, Carsten Cramer, revealed that the term of the partnership will expire in June 2023.
Cramer explained that the duration of the partnership is short as the club wants to explore other alternatives if available. “Even though the industry is new, it's exciting, which is why we want to be flexible with our partnership arrangements,” Cramer added.
According to Cramer, the football club is happy that Coinbase has a regulatory license to operate in the German crypto space, because it doesn't want to associate itself with a non-compliant platform.
The German financial regulator approved Coinbase's license in 2021, allowing the exchange to offer cryptocurrency trading and custody services to German users. Cramer also commented on the status of Coinbase's regulatory license saying:
“BaFin's endorsement license gives us the confidence to partner with this global brand, as this industry is still new and many outside the industry are still confused about how it works.”
Despite the positive aspects of Coinbase, this exchange is not without its problems. The 2022 bear market has taken its toll on the company, which laid off 18% of its 2022 staff and 950 more employees earlier this month. Additionally, the exchange announced a pause in its operations in the Japanese financial market, citing the challenging economic environment. For this many have moved on Bitcoin Pro, for trading cryptocurrencies
Other cryptocurrency exchanges partner with football clubs
Coinbase's expanded partnership is the latest of many collaborations between cryptocurrency exchanges and football clubs. For example, Binance is the main jersey sponsor of the Italian football club Lazio and the Argentina men's national team. Binance also partners with soccer star Cristiano Ronaldo to launch his NFT collection.
Similarly, Bitget (another top-tier cryptocurrency exchange) is a jersey partner of Juventus (probably the most successful football club in Italy). Bitget is also a partner of eight-time Ballon d'Or winner Lionel Messi. The Bitget-Messi partnership will allow Messi fans to explore the Web3 space and cryptocurrency trading on Bitget's platform.