For the first time in history, a digital currency trading platform has surpassed a huge and renowned financial institution based on profits. This all happened in Q1 of 2018.
Cryptocurrencies are gaining a lot of momentum again and more companies are starting to accept Bitcoin as a payment method.
Binance, the biggest cryptocurrency exchange by trading volume, recorded a profit of $200 million in Q1 of 2018. That is more than Germany’s biggest bank Deutsche Bank. Deutsche Bank has existed since 1870 and managed to take in a profit of $146 million in Q1 of 2018.
Changpeng Zhao, CEO of Binance wrote on March 3: “Binance is the world’s largest cryptocurrency exchange. In the first 3 months from the start, profits amounted to $7,500,000 USD. In the second quarter from the start, profits went up to $200,000,000 USD. The 3rd quarter is still in progress, and more growth seems imminent. Any country that can attract Binance to open a branch in their location will receive a handsome tax income revenue.”
Christian Sewing, who was appointed as the new CEO at Deutsche Bank in April 2018, stated that the bank will move away from hedge fund investment, they seem to try to stabilize on a few areas where the bank is still dominant. With an $800 million restructuring plan and a massive cut of employees, the bank aims to increase its profitability in 2018.
“Deutsche Bank is renowned in Europe, here we want to provide our clients access to global financing and treasury solutions. This is what we will focus on more decisively,” Sewing told Reuters.
If you take into account that Pantera group is saying that it is possible for the overall crypto market cap to reach $40 trillion, you can imagine the profits rising even further and the shift of finances can proceed. As of today, the overall market cap is at $410 billion, with Bitcoin (BTC) being valued at around $9000 and Ethereum (ETH) at $650.