Later this year, German N26 will launch the ability to invest funds in crypto assets. As many as 7 million people will gain access to them.
Fixing a mistake made earlier
Max Tayenthal, co-founder of N26, admitted that the German neobank’s goal is to delve into the crypto services market and make it available to its multi-million dollar community later this year. In a recent interview with the Financial Times, he admitted that his company missed the cryptocurrency boom and instead of focusing on expanding its offerings in that particular area, it shifted its attention to overseas expansion. This is how N26 entered the UK and US markets in recent years.
“Should we have enabled cryptocurrency trading instead of entering the US market? In hindsight, it might have been a smart idea.” – Tayenthal points out.
N26 has therefore changed its strategy. Last year, it closed its services in the UK, and plans to do the same in the United States in 2022. The market reduction, however, is the aftermath of regulatory problems the bank faced in both jurisdictions. These concerned AML regulations, which, according to regulators there, were not fully complied with. However, this does not change the fact that on the European market N26 still remains an institution with an established position.
A serious player with strong competition
In connection with the latest plans, N26 has raised an additional $800 million in funding, which makes the popular neobank now valued at nearly $9 billion. The funds raised will help not only launch access to the cryptocurrency market, but also a brokerage platform for the stock market. Faced with such numbers, N26 has the right to become one of the leaders in its sector, in addition in Europe, which looks very favorably towards crypto assets.
However, one should not forget about the competition. Among the fintech companies involved in cryptocurrencies is Revolut, which originates from the United Kingdom. The company has 15 million customers worldwide, mostly in the Old Continent, and crypto assets have been present in the app for a long time.
Another important step for cryptocurrency adoption
Neobank entering the cryptocurrency market, is an important part of the adoption of the crypto sector. With 7 million available users, it is almost certain that a sizeable percentage of them, will take advantage of the newly available services. Thus, it is another example of a financial institution unable to pass by cryptocurrencies indifferently. And if the bank sees market potential in the sector, it gives additional social proof of the authenticity and quality of the product for new customers.