The acquisition of one of the prominent financial institutions will help the crypto firm to expand its horizons across Europe
- Well known crypto exchange and trading platform BitMEX has planned to buy German Bank
- Bankhaus von der Heydt is one of the oldest and renowned Bank in Germany
- The terms and amount for acquisition have not been disclosed yet
The increasing popularity of digital assets and cryptocurrencies makes traditional institutions step into the crypto market either by acquiring a crypto firm or expanding its sector into it. Countries preparing for launching their own CBDCs and institutions accepting Crypto for various purposes can also be considered a result of crypto influence. However, it’s the opposite, where crypto firms acquiring traditional financial institutions have also been seen nowadays. Following the same, crypto exchange and trading platform BitMEX has announced that its subsidiary company BMX Operations AG is going to acquire Bankhaus von der Heydt, a prominent German Bank.
The announcement was made by BitMEX’s CEO, Alexander Höptner, and CFO, Stephan Lutz, also founders of BMX operations AG. Purchase Agreements have been signed by BMX Operations AG officials and the current owner of Bankhaus von de Heydt Dietrich von Boetticher. However, the acquisition is yet to be approved by Germany’s regulatory authority BaFin. Soon after the approval transaction process is completed, all formalities are expected to be completed by mid-2022.
Company’s vision behind choosing Germany and Bankhaus von der Heydt
CEO Höptner stated that the acquisition would result in a combination of Bankhaus von der Heydt’s expertise in digital assets regulation and crypto exchange, innovation and volume of crypto users of BitMEX. He also hopes that BitMEX can be turned out as a potential and trusted source for Crypto and digital assets with proper regulations in the centre of Europe.
Höptner’s view can be considered on point because Germany is the largest economy in Europe (about $4.3 trillion). Stephen Lutz also said that Germany was the suitable choice for its expansion in Europe, considering its business-friendly economy. The Company had been headquartered in Germany as well.
Bankhaus von der Heydt stepped into digital assets management and other crypto services. It had made a custody deal with blockchain service provider Fireblock. In addition to this, the Bank also provided payment services based on Blockchain. These features of German Bank can act as a bonus for BitMEX, which can help them expand crypto services around the country with the experienced and regulated institution regarding Crypto.
Both the authorities have signed the deal, obviously after an agreement on terms and price. However, the information has not been disclosed yet publicly. BaFins’ approval is also awaited at the moment. The acquisition deal is expected to come into action until mid-year this year.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.