Blockchain and crypto mining firm Stockholm IT Ventures (SITV) will provide its virtual currency trading tool to German financial services startup Valens Bank under an agreement revealed on Wednesday.
The deal, which SITV entered through its arm Blocktrade Technology (BTT), granted the Frankfurt am Main-based company a license to use the BTT Crypto Trading Toolbox, which gives access to over 3,500 markets and more than 45 digital asset exchanges.
BTT will respectively earn an annual license fee of 1.5% of the capital deployed into Valens Bank’s trading program.
As of September, the service is due to be available for customers of the financial services enterprise. The two parties will in the meantime collaborate to develop the back-end mechanics needed.
"We are confident that this software will offer great value to clients and give pro-traders the market edge all are looking for. We have made a thorough due diligence of the BTT software in live trading situations and are amazed by its performance," Valens Bank director and co-founder Torben Valens commented.
The collaboration with the multi-currency banking services provider is the first license contract for BTT, which released the solution at the beginning of August. After it was acquired by Frankfurt Stock Exchange-listed SITV in 2017, BTT shut down its operations as a cryptocurrency exchange and started building the AI-based crypto trading service. The core motive behind the move is said to the “huge advantage” of robot trading to benefit from considerably bigger spreads, according to a press release.
In another segment of its business, SITV engages with cryptocurrency mining via its subsidiary Cryptoplants. The mining activities began a few weeks ago and are set to be funded by SITV’s own Bytemine (BYTM) coin. In a pre-sale crowdfunding round that closed recently, SITV raised €5 million, which will reportedly be sufficient in the short run, so the firm decided to postpone the coin offering “until the trading results have demonstrated a proven track record”.