A crypto investment company wants to buy one of the oldest banks in Germany
A very old traditional German bank is about to be bought out by a crypto firm. According to recent reports, Bitcoin Group SE is considering 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 the largest traditional bank is being bought out by a crypto investment firm. This provides a perfect case of the ancient transition to modernity. True, digital currencies are a new technology trying to surpass the old fiat currencies, while payments via decentralized blockchain networks are fighting 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 try to buy
Interestingly, Bitcoin Group SE is not the first crypto-oriented entity to express interest in acquiring the bank. Back in January, crypto exchange BitMEX initiated a deal to achieve the same. However, things did not go as expected and the two entities came to a mutual agreement to cancel the engagement. Details of why the deal fell through in March are still unknown.
The bank has been looking for a buyer
Bankhaus von der Heydt has been a bit pro-crypto lately, which may explain why crypto entities are interested in acquiring it. In 2021, the bank entered into a partnership with Fireblocks, a company that provides custody services for digital assets. The partnership was intended to enable the bank to offer crypto-related services to its customers.
While the bank has struggled to innovate and stay 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 BaFin, which is Germany’s body that handles financial regulation.
Bitcoin Group SE is an investment company based in Germany. Bankhaus von der Heydt is apparently not 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 appears keen to buy up various banks as it seeks to diversify investment options for its clients and increase potential returns. At this point, it is still not clear how far the talks have progressed or how long it will take before the bank is fully in the group’s hands. Either way, it’s good for the crypto industry.
