TCS Group, the parent company of private Russian bank Tinkoff, has acquired a majority stake in Aximetria, a startup that allows users to invest in cryptocurrencies, despite Russian market watchdogs’ harsh stance on the digital currency environment.
Aximetria, founded in 2018 by Alexey Axelrod, is one of the first crypto players in Switzerland to be granted a FINMA (Swiss Financial Market Supervisory Authority) license to handle cryptocurrency and cash transactions. However, the size of the TCS Group-Aximetria deal is unknown, and there is no word on how the corporation plans to maximize its ownership in the Swiss startup as of this writing.
Aximetria will develop as part of the Tinkoff Group’s international expansion, according to local news channel The Bell, under the requirements of jurisdictions with an international presence. The deal’s specifics will be reported in the Group’s annual reports in compliance with recognized disclosure standards.
The rise of cryptocurrencies has prompted numerous traditional financial players to look into ways to become involved and provide crypto-related services to their consumers. The TCS Group’s acquisition of Aximetria confirms its plans to find a solution, as the company’s Chief Executive Officer, Oliver Hughes, stated in an interview with CNBC last year that clients are expecting crypto products, which the company is unable to provide due to rigorous rules.
While the Aximetria acquisition will be the Tinkoff Group’s first foray into crypto, it is clear how established banks are eager to break regulations to keep up with current financial innovation trends. Just as Tinkoff is attempting to position itself to offer crypto services, Kookmin Bank, South Korea’s largest commercial bank, announced plans to offer crypto services as early as August 2020, confirming that the move is quickly becoming a global trend.