Cryptocurrencies undoubtedly bring new business opportunities. The expanding industry around digital assets and its customers need more and more services that traditional sectors can provide. Banking is often a bottleneck in the crypto space as most traditional institutions are still reluctant to get their feet wet. Smaller banks, however, are more willing to occupy this niche and reap the rewards.
Also read: Crypto Banking Expands With Positive Interest Rates and New Services
Aiming for a Reward That Justifies the Effort
Navigating the regulatory maze, in the midst of which most crypto companies operate these days, is not easy. Organizations from other industries which work with crypto firms have to deal with the same obstacles. It’s often hard to do business and make a profit. But the current situation also creates opportunities, for there’s a margin to be made in this kind of environment. And it’s usually the small, young and hungry businesses that accept the challenge, hoping that the reward will justify the risks and efforts.
Most big banks have been shying away from the cryptosphere, be it because of the regulatory uncertainty, the volatile nature of the market, or maybe they just see a threat to their good old ways of banking. But small-size financial institutions and representatives of the nascent fintech industry cannot afford to be so shy. In the fast-moving cryptoconomy, every opportunity the growing sector offers is worth exploring and exploiting.
The case of the German WEG Bank illustrates this very well and shows that banks and crypto companies can cooperate in a mutually beneficial way. In the summer of 2018, as part of a partnership deal, the crypto payment provider Tokenpay Swiss AG acquired a 9.9% stake in the bank with plans to
