The past two years have seen some traditional fintech companies such as PayPal, Robinhood, and others delve into the cryptocurrency space. Now German internet banking giant N26 wished it had followed the same route sooner.
N26 Should Have Focused on Crypto Instead of Global Expansion
The co-founder of N26, Max Tayenthal, told Financial Times in a recent interview that the company had rushed its global expansion. The company is currently closing its operations in the United States after exiting the United Kingdom in 2020.
Tayenthal said, “Should we have built trading and crypto instead of launching in the US? In hindsight, it might have been a smart idea.”
N26 is now planning to launch a cryptocurrency trading business later this year. This would be followed by the launch of an equities brokerage in 2023. “We really want to expand our product universe, and we have to,” the co-founder added.
N26 is one of the leading internet banking companies in Germany. Last year, N26 was valued at €7.8bn ($8.7 billion) after it raised €780m. However, rival fintech platform Revolut, which offers cryptocurrency trading, is valued at $33 billion.
Despite the company’s recent troubles with German financial regulators, Tayenthal said N26 is exploring the possibility of going public before the end of the year.
Fintech Companies are Expanding their Presence in the Crypto Space
PayPal, Revolut, and Square (now known as Block) are becoming heavily involved in the cryptocurrency space. Revolut and PayPal allow their customers to buy and sell cryptocurrencies on their platforms.
Jack Dorsey resigned from his role as Twitter boss to focus on Block. The company wants to provide Bitcoin-focused financial services to its customers. PayPal, meanwhile, is reportedly close to launching its own stablecoin.
In September 2021, Revolut paid for its office space in the United States with Bitcoin. According to the company, the move was to showcase its growing belief in cryptocurrencies as a method of payment.