German Exchange Bitcoin.de Buys German Investment Bank Tremmel To Expand Operations And Offerings
Bitcoin Group SE, which is listed on the Frankfurt Stock Exchange, is the operator of Germany’s only regulated digital asset platform Bitcoin Deutschland AG, better known as Bitcoin.de.
The company has announced the acquisition of Tremmel Wertpapierhandelsbank GmbH, a German investment bank in an effort to improve liquidity, legitimacy and expand its operations and offerings.
Initial details of the deal do not disclose the amount of money involved in the German firm’s second acquisition in 2018; although the company did say that the amount could be “in the lower seven-digit euro range.”
Bitcoin.de offers four crypto assets for trading:
- Bitcoin (BTC)
- Bitcoin Cash (BCH)
- Ethereum (ETH)
- Bitcoin Gold (BTG)
Acquisition allows Bitcoin Group SE to expand
The acquisition of the bank offers Bitcoin Group SE access to Tremmel’s banking license, which allows the crypto company to expand its operations, improve liquidity to the exchange and launch cryptocurrency ATMs within Germany.
According to an official press release, finalizing the acquisition also means that Bitcoin Group SE can now launch their crypto-related products and conduct proprietary trading in digital currencies.
According to Bitcoin Group managing director Marco Bodewein, Tremmel is “an excellently positioned partner with in-depth knowledge of the market.” He also added that the acquisition would enable the German company to take its corporate development to a whole new level.
Reportedly, the deal will be finalized within the first six months of 2019, once relevant regulatory authorities give it the green light.
Purchasing the bank allows the digital currency exchange to not only expand its operations but also gives it the opportunity to consolidate its existing position within the crypto sector.
It will also play a critical role in ensuring that the firm continues to attract users who will benefit from reduced risks arising from an uncertain regulatory environment.
For that matter, the two companies have agreed that Tremmel’s operations will continue to be overseen by the bank’s current managing director and sole shareholder, Rainer Bergmann.
Bergmann is also expected to expand the bank’s services, working with Bitcoin Group SE to make it a custodial bank.
Efforts to expand saw Bitcoin Group acquire 50 percent of Sineus Financial Services, an investment brokerage firm. At the time, Bitcoin.de said that the acquisition would help it diversify risk as well as using it to provide its users crypto-related financial services.
The regulatory landscape in Germany may still be a wee stricter on Bitcoin and cryptocurrency but could be one of EU nations that could see rapid growth in the blockchain and crypto industry.
In October this year, Germany welcomed the launch of the very first Bitcoin ATM in the country.
In May 2018, online bank BitBond launched a service that saw it offer loans to small business in Bitcoin; with its founder Radoslav Albrecht suggesting at the time that Bitcoin payments provide an efficient alternative to SWIFT
Another big acquisition in the offing is the rumored deal between a Canadian firm and U.K based exchange EXMO. Reportedly, GoverMedia Plus, a publicly-traded firm is said to be on the verge of acquiring EXMO, with both firms said to have signed an agreement in a recent MOU.
Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.