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While the funds invested remain undisclosed, the deal is projected to be finalized by mid-2022.
BXM Operations AG, a startup affiliated with the BitMEX Group has finalized plans to acquire German bank Bankhaus von der Heydt, one of the mainstream financial institutions in the country. According to an official release from the BitMEX affiliated firm, the acquisition will help in expanding the reach of the BitMEX group in Europe and through the infrastructure and current business leverage of Bankhaus von der Heydt, BXM Operations will create a regulated crypto product powerhouse in Germany.
Founded by BitMEX’s Chief Executive Officer, Alexander Höptner, and CFO Stephan Lutz, BXM Operations will allow the bank to operate as an independent entity. Both Alexander and Stephan will join the supervisory board of the Munich-based bank upon the completion of the deal.
Per the update shared, the agreement to purchase the bank has been signed by both BXM Operations AG and Bankhaus von der Heydt’s current owner, Dietrich von Boetticher with the approval from BaFin being the only thing stalling the acquisition. While the funds invested remain undisclosed, the deal is projected to be finalized by mid-2022.
“Through combining the regulated digital assets expertise of Bankhaus von der Heydt with the crypto innovation and scale of BitMEX, I believe we can create a regulated crypto products powerhouse in the heart of Europe,” said Alexander Höptner with Stephan Lutz adding that “Germany, as the largest economy in Europe, combines an innovative approach to digital assets with strong regulatory oversight and rule of law – making it a prime market for BitMEX’s expansion in Europe.”
BitMEX as a Regulated Bank Owner: Extending Crypto’s Reach
There is a very thin line that connects players in the digital currency ecosystem and those in traditional finance. While the pioneering cryptocurrency service providers are making a move to delve into mainstream banking services, giving the right regulatory allowance, a number of legacy banking institutions are also creating avenues to offer crypto services, creating a cycle that seems to be building up.
Crypto entities operating from the European Union, particularly in countries like Germany and Switzerland where laws governing digital currencies are well defined have a relatively high upper hand in delving into banking-related services. Beyond BitMEX seeking a push into mainstream banking through its proposed German bank acquisition, Swiss-based SEBA Bank remains amongst the major outfits redefining the reach of digital currencies as a viable financial product.
SEBA Bank recently generated $119 million in Series C funding to fund its global expansion. In the United States, the integration between crypto and banking is also tightening with crypto-focused Silvergate Capital Corp (NYSE: SI) going public on the New York Stock Exchange back in December 2019.
Based on increasing client demand, multinational banking institutions including Morgan Stanley (NYSE: MS), and Goldman Sachs Group Inc (NYSE: GS) amongst others are always creating tailored crypto services for their customers, a trend that is currently being sparsely accommodated by regulators.