Blockchain and cryptocurrency firms long used to be shunned by traditional financial institutions in the European Union can now breathe a sigh of relief.
Berlin, Germany-based solarisBank has received the licenses necessary to offer business banking accounts to Blockchain and cryptocurrency firms operating in the European Economic Area. Companies in the space can consequently open a ‘Blockchain Company Account’ using fiat currencies.
Filling a Gap in the Market
The new service follows the unveiling of the solarisBank Blockchain Factory which is aimed at providing a regulatory and technological bridge between the blockchain technology sector and the banking field.
We're truly excited to launch our own @solarisBank Blockchain Factory today to become the #banking partner for the #cryptocurrency and #blockchain industry. Read more about this strategic step in our official press release:https://t.co/EG2qiqopZG
— Solarisbank (@Solarisbank) June 28, 2018
Another solarisBank product known as Automated Trust Account, which is basically an automated cryptocurrency marketplace escrow account, has also been introduced. The business account will ease the buying and selling of fiat currencies on global cryptocurrency exchanges or marketplaces.
Already, solarisBank has partnered with vPE Bank to allow trading of cryptocurrencies at the institutional level. More services are also in the pipeline and this includes offering digital banking as well as debit cards to blockchain firms.
More Value for Clients
According to the chief technological officer of solarisBank, Peter Grosskopf, this will enhance security and convenience, especially when linked with wallets and marketplaces.
“The next logical step is to connect our digital banking and debit cards solution with exchanges and wallets, so partners can create their own crypto retail banking experience. These accounts significantly reduce the risk to their end-customers and make the trading and possession of cryptocurrencies not only more convenient but also more secure,” wrote Grosskopf in a blog post.
Per the chief executive officer of the financial institution which describes itself as a ‘tech firm with a banking license’, Roland Folz, high demand for a licensed partner who will provide the regulatory and technological link to traditional banking exists in the field of cryptocurrency and blockchain technology. Besides vPE, the German financial institution which is a little over two years old is in the process of implementing more partnerships this year.
Traditional Finance Meets the Future
Though revolutionary solarisBank is not the first financial institution in Europe to offer corporate accounts to blockchain and cryptocurrency firms. Liechtenstein’s Bank Frick has for instance conducted business with companies in the crypto sector for some time now. And last month Hypothekarbank Lenzburg became Switzerland’s first bank to offer corporate accounts to firms in the crypto space.
— Richard J. Witismann (@Incorporate_ee) June 25, 2018
Despite Switzerland’s more progressive stance towards cryptocurrencies and blockchain technology, startups in the field still found it an uphill task opening business accounts with the traditional financial institutions. This had resulted in some of the blockchain and crypto firms turning to banks in Liechtenstein.
When announcing the move Hypothekarbank Lenzburg, however, revealed that due to the fact that conducting due diligence for crypto and blockchain firms involves additional costs relative to regular corporate accounts, the business banking accounts for crypto and blockchain companies would be more expensive.
Featured image from Shutterstock.