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The decision by N26 to launch crypto and equities trading comes after the fintech discontinued operations in the United States.
German neobank N26 is looking to launch trading in crypto and equities later in the year. The prominent fintech, one of Europe’s largest with more than $9 billion in valuation, earlier embarked on a global expansion. However, that exercise led to a setback in the diversification services of the Berlin-based financial platform.
Co-founder and chief executive officer of N26 Max Tayenthal admitted that his company missed out on the crypto boom by prioritizing global outreach. As a result of this, N26 is now shutting down its US operations after exiting the UK in early 2020. As Tayenthal put it, “should we have built trading and crypto instead of launching in the US? In hindsight, it might have been a smart idea.”
In addition, the online banking platform will also enhance its visibility in the European markets. Furthermore, N26 will include more offerings in its range of products and services to its large customer base. By launching a crypto trading business and an equities brokerage this year, the fintech hopes to sow the seeds of aggressive expansion. Tayenthal noted that this was imperative for the justification of the firm as one of Europe’s leading fintechs. According to him, “We really want to expand our product universe and we have to.”
The N26 CEO stated that this was way more effective than just “putting flags in new markets”. At the moment, the N2 mobile app is yet to offer crypto functionality. In addition, very little is known about the fintech’s plan for crypto trading products and features.
N26: An Established Financial Player Prior to Planned 2022 Crypto Trading Launch
Founded in 2013, N26 was worth slightly more than Germany’s second-largest bank Commerzbank as at October last year. The metrics used for this assessment were trading and banking services. In addition, at the time, N26 was also looking to go public within the next year and make new hires en route to global expansion.
N26’s current offerings include bank accounts and debit card functionality that the user can access via a mobile phone application. This mobile app also negates the need to physically approach the bank branch to fill out the requisite paperwork for account openings. Upon verifying submitted details, users receive their independent bank accounts alongside virtual cards for future money transactions. Beyond that, users can choose to avail themselves of several further N26 perks pertaining to account offerings.
However, as earlier stated, due to N26’s withdrawal from the US, American users will no longer be able to use the app starting from January 11. At the time, back in November, the bank released a statement which reads:
“US customers will be able to use their accounts as usual until January 11, 2022, and will receive further instructions on how to withdraw their funds to ensure a smooth transition.”
The fintech’s operational shutdown in the North American nation comes less than two-and-a-half years after it launched in the country.