Berlin-based solarisBank, a Fintech company with a German banking license, has announced that it will extend its range of services provided for cryptocurrency-linked companies. The Banking-as-a-Platform (BaaP) institution is opening its arms to the crypto community through a dedicated banking service called ‘Blockchain Factory.’
The newly featured resource will allow crypto and blockchain-related operators to create their own retail banking experience. The BaFin-licensed firm says the new offering while provides financial management services to digital asset operators; it will also reduce the risk to end-customers and make the cryptocurrency transactions more secure.
SolarisBank’s CTO Peter Grosskopf added that the next step would be connecting their digital banking and debit cards solution with crypto exchanges and wallets to bridge the gap between the two worlds.
He further explained that although many banks are already exploring ways to incorporate blockchain into their processes, but for the most part, “these are defensive measures, as most banks have created or joined closed blockchain consortiums.”
“While we at solarisBank are still part of the traditional paradigm, since we have a German banking license and are regulated by BaFin, we are still a tech company at our core. That means we are actively exploring options to help shape and support the emerging decentralized paradigm by enabling the pioneers that are building it,” noted Grosskopf who also leads Blockchain Factory.
A potential incubator for crypto
Earlier in April, solarisBank has partnered with German bank VPE to facilitate cryptocurrency trading for institutional investors, like hedge and pension funds. Under the agreement, solarisBank will offer a custodian service to deliver stringent financial controls as well as secure storage.
A survey carried out by German bank Postbank in May revealed that one in three German millennials, with currently no exposure to cryptocurrencies, would consider including the digital asset class into their investment portfolios. Around 6 percent of those aged 18-34 year already have invested in a cryptocurrency, while 14 percent are definitely planning to invest next year, shunning more traditional investments such as shares, bonds, and property.
The poll of 3,100 Germans, across a broad demographic, also found despite a growing sense that cryptocurrency regulation is now inevitable, 60 percent of women and 51 percent of men are citing “independence from established financial systems” as an important factor.
The free fall in cryptocurrency prices since the beginning of 2018, however, has encouraged critics to warn again that the virtual asset is a bubble and that investors should stay away. Earlier in November, German’s Federal Financial Supervisory Authority (BaFin) has become the latest European authority to join this camp, warning investors of the risks associated with ICOs.