German Crypto Firms to Get VIP Treatment
Cryptocurrency firms in Germany are in for a special treat as Berlin-based Banking-as-a-Platform (BaaP) institution Solarisbank has rolled out its new banking service plan dedicated to individuals and company in the cryptocurrency arena.
Solarisbank said it is planning to offer a service dubbed as the “Blockchain Factory” to provide financial management services to companies which offer cryptocyrrency solutions and blockchain.
“The Blockchain Factory will be used by Solarisbank to offer banking services to companies whose business is directly or indirectly based on cryptocurrencies and blockchain technology — One example of these services is the ‘Blockchain Company Account’ for the banking business of blockchain companies,” Solarisbank said in a statement.
“Furthermore, services for global cryptocurrency marketplaces will be made available to make it easier to buy and sell fiat currencies; such as the Solarisbank ‘Automated Trust Account’, an automated escrow account for cryptocurrency marketplaces,” the bank added.
Roland Folz, chief executive officer of Solaris, recognized the high demand for financial services among crypto entities amid the criticisms engulfing the industry. “There is high demand from the blockchain world for a licensed partner that forms the technological and regulatory bridge to traditional banking — as a technology company with a banking license, we are the natural partner.”
“Many cryptocurrency entrepreneurs I’ve spoken to the past couple of months have described a similar problem: the need of a regulatory and legal infrastructure to connect the crypto and fiat world. When you’re building up a banking platform such as solarisBank from scratch, you do not only need to develop cutting-edge APIs,” Folz said in his blog post.
The financial tech firm is seeking to provide digital currencies to institutional traders together with its new partner VPE Bank.
“The fiat world is not about to dissolve. We are moving towards a hybrid future, in which the blockchain world still has to prove itself. However, we see the disruptive power of these business models and we want to help shape the future of this industry,” Peter Grosskopf, chief technology officer of Solarisbank, said.
Moving forward, the German company is keen on forging more partnerships with crypto firms focusing on banking and debit cards in their business model.
The development comes as virtual currencies have gained ground in global markets through the years, although a handful of exchanges and brokerage services that have crypto business had encountered issues with their respective banks.
Also, banks and other financial management services have ended their collaborations with crypto companies. They also closed business accounts, making it challenging for blockchain providers to find reliable partners in the field.
Solarisbank asserted that even though the firm remains part of the conventional paradigm, it is a technology company, meaning it is actively seeking options to help redefine and support the emerging decentralized standards by letting pioneers into the realm.
“At solarisBank… we see the openness of blockchains as a strength. We see open, decentralized blockchains as creating opportunities for all when it comes to innovation in banking,” Floz added.