German Bank, Kraken Establish First Crypto-Currency Banking Platform

Munich-based Fidor Bank AG and bitcoin exchange Kraken have formed a partnership to establish a specialised bank for crypto-currencies.

The two partners plan to set up of the world’s first regulated, licensed financial services platform in the digital currency sector. They plan to pool products and services from various providers of digital assets and to offer a wide range of financial products and other services related to crypto-currencies.

Fidor Bank already has partnerships with Kraken, Ripple Labs, and Bitcoin.de. The initiative is looking for other interested partners, including various providers of virtual currencies, financing, technical solutions, and marketing understanding, to be aggregated into the crypto-currency bank.

Matthias Kröner, Fidor Bank CEO, commented:

The aim of this initiative is to establish a specialized banking platform for crypto-currencies. Products and services from various providers of virtual assets like bitcoin are to be bundled in a kind of crypto-currency-marketplace. We want to build a regulated and specialized banking home for entrepreneurs and retail customers who are intrigued by the idea and vision of a virtual currency system. But this, we cannot and we will not do on our own.

Fidor Bank has indicated that it will provide the regulatory expertise, core banking platform, and licenses as well as the technical basis via its IT-service subsidiary Fidor TecS AG.

Kraken will contribute its technological capabilities in crypto-currencies safe storage, exchange and trading.

Fidor Bank and Kraken hope to, by December 2014, take first steps with selected partners to setting up the platform.

Jesse Powell, Kraken CEO, added:

We are extremely excited about the opportunity to deepen our partnership with Fidor, to leverage the experience we’ve gained working together over the past year, and to benefit the broader crypto-currency community, industry and ecosystem. We hope that in opening up our relationship and expanding our circle of trust, we’ll see the industry grow, regulators become more comfortable, and other banks thaw out.

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