Ziglu, the British Crypto Friendly Bank, Is on Sale

According to reports, Sky News quoted sources as reporting that Ziglu, a British crypto friendly bank, is negotiating with buyers interested in acquiring it at a lower price after the collapse of its acquisition deal with Robin Hood, and is hiring investment bankers to oversee the sale. In addition, the company hopes to raise approximately £ 2 million ($2.46 million) at a valuation of $12.3 million to enable it to continue operating until a sales agreement is reached.

Foreign media: Crypto Friendly Bank Ziglu is negotiating with potential buyers and plans to raise $2.46 million to continue operations before being acquired

Introduction

Ziglu, the British crypto friendly bank, has reportedly put itself up for sale after the collapse of its acquisition deal with Robin Hood. According to sources quoted by Sky News, the digital bank is looking for buyers who are willing to purchase it at a lower price. Furthermore, the company is said to be hiring investment bankers to oversee the sale and hoping to raise approximately £2 million ($2.46 million) to continue its operations. This article aims to provide an in-depth analysis of the situation surrounding Ziglu.

The Background

Launched in 2019 by Mark Hipperson, former CTO of the peer-to-peer lender, Starling Bank, Ziglu offers access to cryptocurrencies, traditional currencies, and commodities. The digital bank offers users the ability to store, exchange, and manage multiple currencies, including British pounds, euros, US dollars, and cryptocurrencies such as Bitcoin and Ethereum, from a single app. Ziglu aims to make transferring funds as easy as sending a message on WhatsApp.

The Collapse of the Acquisition Deal

In May 2021, Ziglu announced that it had entered into an agreement to be acquired by the US trading platform Robinhood. The deal was expected to go through in the second quarter of 2021, subject to regulatory approval. However, the deal fell through after Robinhood pulled out of the acquisition agreement, citing regulatory issues. The failure of the deal reportedly left Ziglu facing a cash crunch.

Putting Ziglu on Sale

Sources quoted by Sky News allege that Ziglu has put itself up for sale and is negotiating with potential buyers interested in acquiring the fintech at a lower price. Furthermore, the report suggests that the company hopes to raise approximately £2 million ($2.46 million) at a valuation of $12.3 million to keep operating until a sales agreement is reached. Ziglu is also said to have hired investment bankers to oversee the sale.

The Future of Ziglu

The news of Ziglu going on sale has raised questions about the future of the British digital bank. It remains to be seen who will be interested in acquiring Ziglu and at what price. However, Ziglu enjoys a reputation as a crypto-friendly bank, making it a potential acquisition target for other crypto-based companies or investors seeking to expand their offerings.

The Impact on Customers

Ziglu’s customers, who include both individual and business users, may be concerned about the future of the bank. However, as of now, there hasn’t been any indication that there will be any disruption to Ziglu’s services. The company asserts that deposits up to £85,000 ($105,000) are protected by the UK’s Financial Services Compensation Scheme. In addition, Ziglu’s chief executive, Mark Hipperson, has sought to reassure customers that the bank remains committed to providing its users with the best possible service.

Possible Reasons for Ziglu’s Decision

There could be several reasons why Ziglu has put itself up for sale. The collapse of the acquisition deal may have left Ziglu facing a lack of funds, making a sale necessary to keep the business going. Additionally, market conditions may have changed, making it difficult for Ziglu to continue operating without external funding. It is also possible that Ziglu’s founders see an acquisition as the best way to expand the business and consolidate its position in the market.

FAQ

#Q1. What is Ziglu?

Ziglu is a British digital bank founded in 2019 that offers access to cryptocurrency, traditional currencies, and commodities.

#Q2. Why is Ziglu on sale?

Ziglu is reportedly on sale after the collapse of its acquisition deal with Robinhood. The company is looking for buyers interested in acquiring it at a lower price.

#Q3. What will happen to Ziglu’s customers?

As of now, there is no indication that Ziglu’s services will be disrupted. Deposits up to £85,000 ($105,000) are protected by the UK’s Financial Services Compensation Scheme. Ziglu’s CEO has sought to reassure customers that the bank remains committed to providing its users with the best possible service.

Conclusion

Ziglu, the British crypto friendly bank, has put itself up for sale after the collapse of its acquisition deal with Robinhood. The company is hiring investment bankers to oversee the sale and hopes to raise approximately £2 million ($2.46 million) at a valuation of $12.3 million to continue operations until a sales agreement is reached. While the future of Ziglu is uncertain, the bank’s reputation as a crypto-friendly bank makes it a potential acquisition target for other companies or investors seeking to expand their offerings.
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