Fidor Bank Partners With Kraken to Create Cryptocurrency Bank

November 1, 2014 01:07 UTC

Fidor Bank, a German Web 2.0 bank, is partnering with Kraken to launch an initiative that will create a specialized bank for cryptocurrencies. The project aims to create a regulated and licensed financial service institution. The project will combine several products and services from various companies to offer a great variety of financial products and services that are geared towards cryptocurrencies.

Also read: Vogogo Secures Partnership With Knox Payments to Service Digital Currency Industry

New Cryptocurrency Bank

Kraken is a Bitcoin exchange that is located in San Francisco. Through its partnerships, Fidor Bank can create an environment that will foster growth for the digital currency sector.Matthias Kröner, CEO of Fidor Bank AG, explains their partnership and future goals to Coin Fire:

“As a bank regulated in Germany we are pleased to be the first point of call for this significant international initiative. Conversations with existing and potential new partners have strengthened our conviction in enabling a more focused handling of alternative currency initiatives, like bitcoin. The aim of this initiative is to establish a specialized banking platform for crypto-currencies. Products and services from various providers of virtual assets like bitcoin (e.g. exchanges, payment, trading) are to be bundled in a kind of crypto-currency-marketplace.We want to build a regulated and specialized banking home for entrepreneurs and retail customers who are intrigued by the idea and vision of a virtual currency system. But this, we cannot and we will not do on our own.”

Fidor Bank will be hosting the banking platform, providing IT service and managing regulation while Kraken will contribute to the security and safe storage of digital assets.

“Due to the fact, that this is an open platform, competitive partners are invited to collaborate on this platform. It should be in the interest of all of us to create a network that is as wide as possible. All partners will be shareholders of this platform, which also means that we will only kick it off with a sufficient group of partners and shareholders,” says Kröner.

Jesse Powell, CEO of Kraken states:

“We are extremely excited about the opportunity to deepen our partnership with Fidor, to leverage the experience we’ve gained working together over the past year, and to benefit the broader crypto-currency community, industry and ecosystem. We hope that in opening up our relationship and expanding our circle of trust, we’ll see the industry grow, regulators become more comfortable, and other banks thaw out. I’m a strong believer in leading by example, and Fidor have proven to be no different, which, in the banking world, makes them unique and sets them in a class above the rest. This is a huge leap forward for the crypto-currency movement.”

Kraken Bitcoin Exchange

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With current progress, setup for the platform should begin this December.

What do you think about the partnership between Kraken and Fidor Bank? Comment below!

Images via Fidor Bank, Kraken, and Shutterstock.

Last modified: November 2, 2014 16:38 UTC

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@DrewjCordell

Drew is an undergraduate student at the University of Texas at Dallas, majoring in Business. He is an active member of the Cryptocurrency community, and enjoys collecting, trading, and writing about various coins. Outside of the digital currency world, Drew tends to spend his time with friends, playing video games, or studying.