US-based crypto exchange Kraken has announced plans to expand its products with intention to expand globally too.
Bitcoin Group SE, the name behind the German-based trading platform Bitcoin.de, will be acquiring a fully licensed German bank, Bankhaus von der Heydt.
According to a press release, the Bitcoin Group SE has concluded the agreements to fully purchase Bankhaus von der Heydt, a German bank with a full banking license. The bank also offers digital asset custody services and minting (tokenising) features as part of its platform offering. The release notes that Bitcoin Group SE has proposed to pay €14 million and 150,000 shares. It is expected that approval from the German Federal Financial Supervisory Authority (BaFin) will take place in the second half of 2023.
Bankhaus von der Heydt is based in Munich and has a rich history, established in 1754. In the last few years, it has struggled to find profitable operations and BMX Operation made a plan to acquire the bank in January 2022. However, the negotiations were unsuccessful and the companies parted discussions in March.
The news follows an announcement from Bitcoin Group SE in October, whereby the platform noted that it was in the process of negotiating with several banks in Germany. At the time of the negotiations, Bankhaus von der Heydt was aiming to set up digital assets trading but was struggling to explore ways to profitably include the technology to implement into its services.
German trading and Bitcoin opportunities
While the bank did manage to get a stablecoin pegged by the Euro launched, it faced obstacles in regulations and protocols in offering the coin officially for trade on its platform.
Bitcoin Group SE already has other banks under its name. In 2018, the company purchased the German-based futurum bank as well as Tremmel Wertpapierhandelsbank, an investment bank that merged into futurum.
Germany is known as one of the most cryptocurrency-friendly countries across the globe, ahead of the United States and Switzerland – despite the fact that Zurich is known as one of the world’s most prominent crypto hubs.