The ING bank, a Netherlands-based financial institution, is spinning off its cryptocurrency custody business to GMEX Group. The new company will be called GMEX Technologies and be wholly owned by GMEX Group. ING Bank’s existing custodial partner, Ledger Vault, will continue providing technology services under an ongoing agreement with the new venture.
ING bank is spinning off its custody business to attract more customers from the financial industry. The ING Bank N.V. has announced today that it will spin off its cryptocurrency custody business to GMEX Group, a subsidiary of GMEX Technologies Ltd., for an undisclosed amount. As part of the deal, GMEX will also acquire some of ING’s clients interested in acquiring custody services.
In a statement released by ING, CEO Ralph Hamers said: “ING is committed to being among the first movers in blockchain-based banking solutions.” He added, “Custody is one of our core activities, and we believe this strategic partnership with GMEX will enable us to provide even better service offerings for our clients.”
The platform will offer various services, including storage, trading, and settlement. The move comes as banks continue to face pressure to get involved in the cryptocurrency market.
ING Bank Spins Off Its Crypto Custody Platform to GMEX Group
The deal is expected to close this quarter and be approved by regulators by the end of 2018. Founded in 2016, The Bank of Montreal (BMO) has made a name for itself as one of Canada’s largest banks, with assets totaling over $1 trillion. It provides banking services in over 50 countries worldwide, including its native country, Canada. In May 2018, BMO acquired GMEX Group Ltd., renamed GMEX Technologies Ltd.
The acquisition made GMEX Technologies part of BMO’s Technology Innovation division, which focuses on providing innovative solutions across three areas. Data & Analytics, Digital Solutions & Platforms, and FinTech & RegTech.
The Netherlands-based bank ING Bank is spinning off its cryptocurrency custody business, which will become a wholly owned subsidiary of GMEX Group, a London-based fintech firm.
The move came after the Dutch bank announced in December that it was looking to sell its custody arm to focus on other areas of development and growth. The company has been offering crypto custody services since 2018 and currently manages over $100 million worth of cryptocurrencies on behalf of clients such as crypto exchanges.
ING Bank’s custodial partner, Ledger Vault, will continue to provide technology services to the new venture under an ongoing agreement. The new entity, called GMEX Technologies, will be based in London and led by Hitun Kumar Shrestha. The company will provide software solutions for the custody and storage of digital assets, including cryptocurrencies.
The spinoff comes as Ledger Vault continues expanding its services to include custodial services for other companies that want to offer crypto custody solutions to their clients but don’t have in-house expertise or infrastructure. With these new offerings, Ledger Vault can help banks and other institutions build digital asset businesses with minimum effort and cost.
The ING Bank’s custody business will become a wholly owned subsidiary of GMEX Group, the London Metal Exchange parent company. The new company will be called GMEX Technologies and is expected to launch later this year.
The Netherlands-based bank, which specializes in corporate and institutional financing, plans to use its crypto custody services as an alternative channel for institutional investors seeking access to cryptocurrencies through their existing relationships with ING Bank’s banking services.
The move, announced Tuesday, will allow ING to expand its client base beyond traditional financial institutions to the broader market of institutional investors wanting to invest in cryptocurrencies. The bank’s decision highlights a growing trend among major banks. Despite their ambivalence toward cryptocurrencies, many are beginning to recognize that they will have no choice but to serve this growing class of investors if they want to be competitive in the future.
This is a big step forward for ING Bank, but it’s not the only one. The bank has recently offered to buy back bonds from its customers to avoid tax increases that could impact bondholders in 2020. Cryptocurrencies are still a profitable investment. You can use bitcoin trading software for trading in cryptocurrencies. In this way, you can easily track your crypto investment.