The German fintech Solaris Bank wants to help investors keep their Bitcoin and other cryptocurrencies safe, and make them available to retail customers in addition to securities. Other banks are looking to replicate this service, but Solaris is probably best positioned to succeed.
Get comprehensive access to global fintech, business, stock market, finance news, and trending topics like Bitcoin and cryptocurrency with the Born2Invest companion app.
German Solaris Bank
The Berlin-based fintech Solaris is one of the first German banks to store cryptocurrencies and make them available to customers in addition to securities. With the changes in the new Money Laundering Act, which regulates the safekeeping of cryptocurrencies in a legally secure and safe environment, banks are trying to find novel ways to offer their customers new solutions. As such, fintech Solaris is attempting to develop a corresponding custody solution.
Blockchain penetrates into the banking landscape
The new Money Laundering Act allows banks to offer and store cryptocurrencies. From 2020, fintech institutions will be able to offer their customers cryptocurrencies, as well as traditional securities such as shares and bonds at the touch of a button in legally secure online banking.
Service providers can make use of the offer and infrastructure via an API-accessible platform. Solaris Bank has already made a significant contribution to the blockchain ecosystem in 2018, with the establishment of Solaris Bank Blockchain Factory as a banking infrastructure provider.
“We took our first steps in the blockchain and cryptocurrency industry almost two years ago with the founding of the Blockchain Factory. Our vision, right from the start, was to provide blockchain pioneers with the banking infrastructure that they often need to close the gap between the fiat and crypto worlds,” said Michael Offermann, Managing Director for Crypto Banking at Solaris Bank.
The beginning of mass-market adoption
As digital assets already comprise a billion-euro market, the safekeeping of digital assets has increasingly become the focus of regulatory and legislative attention. Market participants dealing with the safekeeping of such assets in Germany must apply for a license from the local supervisory authority and the Federal Financial Supervisory Authority (BaFin). Accordingly, the company will apply for a license for the crypto safekeeping business in 2020.
“Digital assets will fundamentally change the way we share values. We see that there are still massive barriers to introducing compliant and secure digital asset services. The current infrastructure for digital assets is not customer-friendly enough for the mass market and is, therefore, inadequate overall. With this, we want to implement our vision of the broad use of digital assets,” said Alexis Hamel, Managing Director of Solaris Digital Assets.
Bitcoin price chart
The Bitcoin price is still caught in its downward slide. Recently, there has been a small stabilization in the $6,600 range. To generate a sustained increase, the price should move above $7,300-7,700. This could be followed by a return to the $10,000 range. Below the November low of $6,600, an additional sell-off wave towards $5,600 is likely to be possible.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in IG, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
Savills IM refinances two Italian assets with one of the first green loans in Italy
One of the first green loans in Italy will refinance the retail park in Fidenza (Parma) and the U4 office...
4 tips to market your small business locally
Whether you’ve recently started a small business or have pivoted your sales tactics for your company because of COVID-19, you’re...
Bitcoin revolution by integration with PayPal
The integration of Bitcoin with PayPal is probably one of the most important news for the entire crypto industry in...
A system of Environmental Sustainability Certification to be created in Italy
The first goal of the experimental program is to create a system of "Environmental Sustainability Certification" that allows a project...
Why your business needs professional language translation services?
Digital marketers may spend months creating a campaign for a product launch in a foreign market, but if it’s not...
Africa7 days ago
Fruitbox Africa: Frankfurt investor and Siemens to create jobs in Ethiopia
Africa5 days ago
Why countries in southern Africa could become leaders in the cannabis sector
Featured6 days ago
How the coronavirus pandemic impacted the German Fintech sector
Featured6 days ago
What’s the problem with the Dow Jones? Maybe it’s overvalued