Bitcoin Group SE Looks to Buy Up German Bank in Frankfurt
Bitcoin Group SE, the holding firm that owns German peer-to-peer cryptocurrency exchange bitcoin.de, is set to buy up all shares of Tremmel Wertpapierhandelsbank GmbH, a Frankfurt-based bank specializing in securities trading. If fruitful, the acquisition may inspire copycats throughout the wider cryptoeconomy.
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Longing a Bank to Long Bitcoin
Pending regulatory approval in 2019, Bitcoin Group SE has agreed to buy up Frankfurt’s Tremmel Wertpapierhandelsbank, or Tremmel Securities Trading Bank, in a deal that will allow the owners of bitcoin.de to leverage the bank’s mainstream German banking license.
Per the deal, Bitcoin Group SE, which already holds the entirety of the shares of bitcoin.de operators Bitcoin Deutschland AG, will add the entirety of Tremmel’s shares to its holdings if regulators give the meld the greenlight.
The acquisition price was reportedly “in the lower seven-digit euro range,” or presumably somewhere between one to four million EUR. The buy up would also see Tremmel’s former director and lone shareholder Rainer Bergmann stay on with the firm to help steer its cryptocurrency pivot.
If approved, the acquisition would see the operators of bitcoin.de leveraging Tremmel’s banking license to shift the platform from a peer-to-peer trading service to a full-fledged cryptocurrency exchange, order books and all.
The deal would complete the vision Bitcoin Group SE laid out in its 2017 annual report, wherein the enterprise’s leadership said they planned to buy a German bank to spearhead, among other things, the “installation of the first Bitcoin ATMs in Germany.”
Germany Seeing Bitcoin Banking Movement in 2018
Bitcoin Group SE, which is already listed on both the Düsseldorf and Frankfurt Stock Exchanges (ticker symbol: ADE), is not only looking to grow its presence in Frankfurt, a major international finance hub, but also throughout Germany and then likely into other parts of Europe.
Interestingly, the Tremmel buy-up won’t lead to the first bitcoin banking enterprise in Germany.
Indeed, in May 2018 the online German bank Bitbond began offering small business loans via bitcoin.
At the time, Bitbond founder Radoslav Albrecht suggested bitcoin offered a more efficient alternative to payments made through SWIFT, the international payments system.
“Traditional money transfers are relatively costly due to currency exchange fees, and can take up to a few days,” Albrecht said.
“With Bitbond, payments work independently of where customers are. Via internet it is very, very quick and the fees are low.”
What’s your take? Do you think it’s a given that more cryptocurrency projects will buy up banks, or do banks need to be moved away from altogether? Let us know where you stand in the comments section below.
Images via Bitbond, Pixabay