Digital currency exchange Binance has outgunned Deutsche Bank in terms of profitability; the bank is one of Europe’s largest and oldest financial institutions, revealing the extent of the cryptocurrency revolution.
Within the first quarter of 2018, the eight-month-old cryptocurrency exchange reported profits of $200 million which accrued over the January and March period; Deutsche Bank recorded net gains of $146 million, which comes significantly under the projected $456.
Occasionally there are news stories that arrive and put the scope of change into perspective, and this is just that; Deutsche Bank was established 148 years ago and has around 100,000 employees, Binance on the other hand has 200 employees and launched its exchange in July of 2017.
In early March of this year Binance CEO, Changpeng Zhao wrote:
“Binance is the world’s largest cryptocurrency exchange. In the first three months from inception, profits amounted to $7,500,000 USD. In the 2nd quarter, profits amounted to $200,000,000 USD. The 3rd quarter is still in progress and is expected to have further growth. Any country that can attract Binance to open a branch in their location will receive a handsome tax income revenue.”
The article continues to reveal an “aggressive” plan to expand globally and increase the Binance workforce by ten-fold over the next year. This is in stark contrast to that of Deutsche Bank which is reportedly putting $800 million into restructuring and has plans to begin laying off a large number of employees, which should move the bank toward a more profitable status by the end of 2018.
Binance moves to Malta
Most recently, Binance has announced that it is in search of greener pastures, and the European island of Malta is the location of choice for Binance; the leaders of the small island are seeking to position themselves as an attractive space for cryptocurrencies, digital startups, Fintech and related industries.
National newspaper The Malta Independent reported that the Malta government is setting up the Malta Digital Innovation Authority and other legislation that will facilitate ‘legal certainty’ for Blockchain technologies and cryptocurrencies.
Silvio Schembri is a name closely tied to the project and is the Parliamentary Secretary for the Digital Economy after Changpeng Zhao had spoken to him; he had this to say about Schembri and Malta’s progressive stance:
“After meeting with Parliamentary Secretary, Mr. Silvio Schembri, we were impressed by the logical, clear and forward thinking nature of Malta’s leadership. After reviewing a proposal bill, we are convinced that Malta will be the next hotbed for innovative blockchain companies, and a centre of the blockchain ecosystem in Europe. Binance is committed to lending our expertise to help shape a healthy regulatory framework as well as providing funds for other blockchain start-ups to grow the industry further in Malta.”
It is entirely possible that cryptocurrency business could take over the financial industry in a couple of decades, enormous growth like this will never go unnoticed, and Binance is leading the charge toward making the overtake a reality.