In addition to numerous collaborations, which are completed each week between Blockchain-Start-ups, banks, corporations and IT service providers, on a slow business with the Acquisitions of travel. It is a single flash in the pan, or a General Trend that is taking the crypto scene?
Particularly, in the field of the largest American crypto-exchange, Coinbase has moved, has incorporated in Recently, three financial services providers. The cryptographic stock exchange Keystone Capital, Venovate Marketplace and Digital Wealth. Coinbase receives with the Acquisition of the companies also licenses as a Broker, a provider of alternative trading systems (Over-The-Counter-Trading) and as an investment adviser. In particular, the authorization for the operation of alternative trading systems facilitates Coinbase the establishment of a trading venue for a Security Token. Similarly, with the message that the Litecoin Foundation has acquired 9.9 percent of the WAY Bank AG – the motives are likely similar to be stored.
The question as to the Why
The incentives for Acquisitions and share purchases are so obvious. Crypto Start-ups need a license to be able to in the financial sector get involved. Exactly these licenses are able to offer regulated financial service providers. Due to the increasing regulatory pressure on crypto Start to be pushed-ups, more and more, to create the infrastructure and regulatory requirements to operate your business in full.
Who has the money for it, trying to take a shortcut, that is to say too much for licenses and infrastructure, to apply for instead of this tedious and build. One thing must be clear: Just because a crypto Start-up to acquire a licenses-equipped financial service providers, this is no free ride, then at the discretion of shops. The authorities are not able to insert your Veto, when you are with the new business agree.
Vice Versa in the M&A business?
But how it looks in the opposite case – there are well-established financial service providers, participating in crypto Start-ups? In contrast to Start-ups in the Bitcoin Ecosystem, there is a lack of traditional financial service providers, often in innovative ideas. It is precisely here that strategic acquisitions of crypto-Start could save ups the viability of financial service providers. Who is not developed further, will sooner or later squeezed out of the market. This Knowledge is also in the otherwise rather conservative financial sector.
So it is not surprising that, for example, Goldman Sachs is involved in a Circle. It is expected that in the future, also established a financial services provider to be secure interests in promising crypto-companies. Instead of purchasing licenses, purchase a financial service provider to allow Innovation, you would have to develop otherwise be very laborious or to build.
The poker game is already in full swing?
So useful, the M&A business from a strategic point of view, like in both directions, we are still at the beginning of the development. The crypto Economy is still in its infancy, and is often far from being commercially successful or viable solutions. So, it is assumed that not only the Usability of the cryptographic products have to be further optimized, but also the interfaces to other IT infrastructures. In addition, the ambiguity holds in the regulation of many financial service providers to invest more in the industry.
Depending on the Start-ups in the Blockchain and crypto area continue to develop, the stronger the M&A is to record business travel. Finally, financial service providers working Use want to buy-Cases, and no unprofitable idea of workshops which could perhaps have eventually success.
Vice versa, it makes for a crypto Start-ups are often the first sense, financial service providers, to purchase the card, if you have the wherewithal and its products and services on a sufficient market maturity, in order to be commercially successful.