A very old traditional German bank is about to be bought out by a crypto firm. According to recent reports, Bitcoin Group SE is mulling plans to take over Bankhaus von der Heydt. The bank was founded way back in 1754, making it one of the oldest banks in the world.
The apparent deal makes for an interesting case considering that the largest traditional bank is being bought out by a crypto investment firm. This makes for a perfect case of the old transitioning to modernity. Granted, digital currencies are a new technology that seeks to outdo the old fiat currencies, while payments via decentralized blockchain networks are battling against the traditional banking system. Bitcoin Group SE is prepared to cough up an estimated $19.6 million to close the deal.
Not the first crypto entity to attempt to buy
Interestingly, Bitcoin Group SE isn’t the first crypto-oriented entity to express interest in buying the bank. Back in January, crypto exchange BitMEX initiated a deal to achieve the same. However, things didn’t work out as expected, and the two entities reached a mutual agreement to cancel the engagement. Details as to why the deal fell through in March are still undisclosed.
Bank has been looking for a buyer
Bankhaus von der Heydt has been a bit pro-crypto of late, something that might explain why crypto entities are interested in acquiring it. In 2021, the bank entered into a partnership with Fireblocks, a firm that provides custodial services for digital assets. The partnership was meant to enable the bank to provide crypto-related services to its clients.
While the bank has been making efforts to innovate and remain afloat, the extreme changes in the market have left it hanging by a thread. As a result, the bank has been actively looking for a viable buyer. However, any deal to close a sale for the bank would be subject to approval by the BaFin, which is Germany’s body that handles financial regulation.
Bitcoin Group SE is an investment firm based in Germany. Apparently, Bankhaus von der Heydt isn’t the first bank it has sought to invest in. The group owns 100% of the shares in Futurum Bank AG and a 50% stake in Sineus Financial Services GmbH. Futurum controls Bitcoin.de, a crypto trading platform. Sineus Financial Services is regulated by BaFin.
The group seems to be keen on acquiring various banks as it seeks to diversify investment options for its clients and increase potential returns. At this point, it’s still not clear how far the talks have gone or how long it will take before the bank is totally in the group’s hands. Either way, it’s good for the crypto industry.
Source: https://www.cryptopolitan.com/crypto-firm-to-buy-banks-in-germany/