N26’s intention to begin crypto and equities trading follows the fintech’s decision to cease operations in the United States.
N26, a German neobank, plans to begin trading in crypto and equities later this year. The prominent fintech, one of Europe’s largest with a valuation of more than $9 billion, has already begun a global expansion. However, the exercise resulted in a setback in the Berlin-based financial platform’s diversification offerings.
Max Tayenthal, co-founder and CEO of N26, stated that his company missed out on the crypto explosion by focusing on worldwide outreach. As a result, N26 will now closing its US operations after leaving the UK in early 2020. “Should we have established trading and crypto instead of debuting in the US?” Tayenthal asks. In retrospect, it might have been a good idea.”
Furthermore, the internet banking platform will increase its awareness in European markets. Furthermore, N26 will expand its product and service offerings to its enormous customer base. This year, the fintech intends to sow the seeds of aggressive expansion by opening a crypto trading firm and an equities brokerage. Tayenthal stated that this was critical for the firm’s justification as one of Europe’s leading fintechs. “We truly want to broaden our product world, and we have to,” he says.
According to the N26 CEO, this was far more effective than simply “placing flags in new markets.” At the present, the N2 mobile app lacks crypto capability. Furthermore, little is known about the fintech’s plans for cryptocurrency trading goods and features.
N26: An Established Financial Player Prior to the Crypto Trading Launch in 2022
N26, which was founded in 2013, was worth somewhat more than Germany’s second-largest bank, Commerzbank, in October of last year. Trading and financial services were the metrics considered in this review. Furthermore, N26 was planning to go public within the next year and make additional hires on its way to global expansion at the time.
N26’s current offerings include bank accounts and debit card capability, which may be accessed using a mobile phone application. This mobile software also eliminates the need to physically visit a bank location to complete the necessary documentation for account openings. Users receive their own bank accounts, as well as virtual cards for future money transactions, after confirming their given information. Aside from that, customers can choose to take advantage of a number of additional N26 account-related benefits.
However, as previously announced, due to N26’s exit from the United States, American users will no longer be able to use the app beginning January 11. Back in November, the bank issued a statement that reads as follows:
“US users will be able to use their accounts as usual until January 11, 2022, after which they will receive additional instructions on how to withdraw their funds to ensure a smooth transition.”
The fintech’s operational closure in the North American country comes less than two and a half years after it began there.