N26 Plans To Offer Crypto Related Services
N26, a neobank based in Germany, plans to offer crypto-related services. The financial institution has noted that these services will be available by the end of the year.
The neobank noted that it should have focused on crypto offerings from the very beginning. N26 had earlier admitted that it had made a mistake by expanding its operations into the United States.
The co-founder of N26, Max Tayenthal, has announced plans to launch digital asset offerings to its clients by the end of the year. The bank notes that these services will be available to its millions of clients once launched.
N26 was created around ten years ago. The German-based neobank has expanded into the U.S. and the U.K. over the past few years. The expansion plans have been motivated by the need to have a global reach.
However, the co-founder has stated that its expansion strategies could have been wrong. During an interview with the Financial Times, the executive noted that the company had missed out on a major boom in the crypto sector.
In 2021, the neobank announced that it had halted its operations in the U.K. The bank has also stated that it plans to shut down its services in the U.S. this year.
“Should we have built trading and crypto instead of launching in the US? In hindsight, it might have been a smart idea,” the executive stated.
The neobank has noted that it is currently looking towards launching crypto-related services. Additionally, it is also targeting an equities brokerage platform, with the report stating that this will be available by the end of the year.
The neobank recently completed a fundraising round where it received over $800 million. The valuation of the neobank has since grown, with it now surpassing $8 billion.
German Financial Institutions Launch Crypto Services
N26 is not the first financial institution in Germany looking towards crypto trading services. The leading competitor of the neobank, Revolut, announced that it would also offer crypto trading services. The services were launched several years ago. Additionally, N26 is one of the largest banks, with a three times higher valuation than that of Revolut.
Sparkasse, an association of savings banks in Germany, has announced that it will launch a cryptocurrency wallet for its clients in 2022. Sparkasse is one of the leading institutions in Germany, with the association comprising more than 400 savings banks. Once this service is launched, it could mark a major milestone in adopting cryptocurrencies in Germany.
Other leading financial institutions have also followed suit. Commerzbank and Volks- und Raiffeisenbank announced that they would also launch a service that will allow the buying and selling of cryptocurrencies.
One of the representatives of Volks-und Raiffeisenbank stated that the institution was moving on with its plans to decide whether crypto services should be launched. The institution also added that it will assess the form in which cryptocurrencies should be traded.
On the other hand, Commerzbank noted that it was working on crypto offerings, specifically trading and safekeeping.