Cryptocurrency Exchange Binance More Profitable Than Germany’s Biggest Bank

The first quarter of 2018 has been very successful for Binance, one of the leading cryptocurrency exchanges out there. It was so successful, in fact, that it passed the profits of Deutsche Bank which is Germany’s biggest bank and one of the leading financial institutions in Europe.

With a profit of $200 million, Binance crossed Deutsche Bank off the list in terms of profitability. What was once a startup is 8 months later one of the most profitable companies in Europe. Counting only 200 employees, Binance is more profitable than a banking giant with 100,000 employees.

Does this make a statement for blockchain as an emerging technology?

According to the CEO of Binance, Changpeng Zhao, it definitely does. As he wrote on March 3:

“Binance is the world’s largest cryptocurrency exchange. In the first 3 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 relocation of Binance from Taiwan to Malta was a bigger move – and one that best adapted to the exchange’s exponential growth. The government of Malta has also been very motivating for the cryptocurrency exchange and welcomes even more companies to ‘uplift’ the cryptocurrency industry.

The new CEO of Deutsche Bank, on the other hand, stated that the bank will move away from the hedge fund investing and focus on stabilizing on few areas where they are still dominant. Currently, they are under an $800 million restructuring plan and a massive cut of employees.

“Deutsche Bank is deeply rooted 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.

All in all, the mere fact that a startup with 200 employees and only one year of existence crossed one of the largest banks in Europe in terms of profit – is one that says a lot of things for the cryptocurrency market alone.