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This blog post first appeared first on old medium publication (https://medium.com/startuprad-io), and was moved to this blog with the relaunch of our website in summer 2024.
Tangany Offers a White-Label Custody Solution for Crypto Assets
Our clients do not need to apply for a license to become a custodian, we already are and offer our service.Martin Kreitmair, CEO and Co-Founder Tangany
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Media Partnership
This podcast is in media partnership with the FinTech Forum (http://www.fintechforum.de/). The FinTech Forum — launched 2013 in Frankfurt am Main — is the first and largest hub for FinTechs in Continental Europe, with a community of more than 12.000 companies. With more than 17 events, with more than 270 startups on stage, and more than 1.000 investors and financial institutions. FTF alumni have raised $310mn+ in funding and resulted in exits worth $300mn+ .
Our level of paranoia is right at the top. The security for crypto assets must be even on a higher level than for banks.Martin Kreitmair, CEO and Co-Founder Tangany
The Founder
We talk to the CEO and Co-Founder Martin Kreitmair (https://www.linkedin.com/in/martin-kreitmair). He is not only with Tangany, but also a member of the Board of Germany’s blockchain association called Bundesblock (https://bundesblock.de/).
He has a master’s in computer science and has been working at a startup for more than seven years, where he was hired as the 7th employee and saw the company grow.
First, we were two founders, …joined by former colleagues from an agency.Martin Kreitmair, CEO and Co-Founder Tangany
Martin became interested early in Blockchain and Bitcoin but was no miner — which he partly regrets now 😊. He felt like it was the right time to start his company after many years as a startup employee.
Security is key for crypto custody.Martin Kreitmair, CEO and Co-Founder Tangany
The Startup
Tangany (https://tangany.com/) is the all-in-one cloud suite to easily offer crypto and digital asset custody to your clients and customers. They do not offer services for retail customers, but rather to fintechs and financial institutions for save keeping of digital and crypto assets (including, but not limited to cryptocurrencies). They are a regulated custodian.
The product of Tangany is a white-label tool (via API) to enable their customers like startups, so they can offer crypto wallets to their (retail)-clients. The big advantage of Tangany for their clients is that they don’t need to get a license since the company is already regulated under German law to be a custodian.
It took us a very very long time to design our architecture … to the highest thinkable level of security.Martin Kreitmair, CEO and Co-Founder Tangany
Excited about a Digital Euro
Tangany would be quite happy if a digital Euro, based on Blockchain is realized, this would be a huge opportunity for them. Since every citizen would need a digital wallet as Tangany could provide.
I am very convinced that a digital Euro will come, one way or another.Martin Kreitmair, CEO and Co-Founder Tangany
Venture Capital Funding
Tangany raised a venture capital round in January 2020 and currently, they are in preparation for another round.
The Video Interview is set to go live on February 2nd 2021 17.00 CET
The Audio Interview
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The Interviewer
This interview was conducted by Jörn “Joe” Menninger, startup scout, founder and host of Startuprad.io. Reach out to him:
Transcript
Intro
[0:00] Music.
[0:08] That I owe you were podcast and YouTube blog covering the German startups.With News interviews and Live Events hello and welcome.This is Joe from celebrated are all your startup podcast and YouTube blog from Germany today I’m bringing you another interview from the German blockchain scenetalking to Matt in hey how you doing Hotel ya doing good great to be here today with you and looking forward to our talk.Yeah totally my pleasure we may say up front that this conversation is in media partnership with the fintech Forum and annual event taking place in Frankfort where there is a lot ofvery interesting in new fintech startups showing up every year of course there will be another one in likely November 20 21and you can take down here in the show notes they’re Linked In Their program after we get through this people already can tell from let’s say the slight hint of your logos that your startup is,tangany I can we first talked a little bit about what do you did before yeah sure.
The Founder — Martin, The Ceo And Co-Founder
[1:28] So I’ve seen of course I’m going through your LinkedIn profile and as always everybody who would like to learn more about you you can’t go down here in the show notes.There is a link to your personal LinkedIn profile where people can reach out to you directly as well keep in mind to like And subscribe to this video wherever you’re watching this so,you have been a quality manager and head of advertising advertising in companies have you been an employee there or did you already start out as an entrepreneur.
[2:05] So yeah the the quoting manager is a very long time ago so if you might skip that one but yeah after that I’ve been in a company as an employee from2011 I believe until 200017 if I remember correctly and my past chop I wasn’t a completeother industry it was online marketingmy background is informatics and economy which I have started a few yeah many years ago and so yeah entered the digital marketing scene and.
[2:46] My work that was not even comparable to what I’m doing now but it was very funny because it was a small team and wasstartup like Stardust I believe the seventh employee there and we have grown to 60 people and within five six years or rabbitgrowth fear if you have won a lot of awards from Google and Microsoft which are the biggest player in that digital marketing sceneso we have achieved quite a lot and with that I have also gotmore more responsible responsibility and the team and I started as a team lead and a team of two people and the team has grown to 10 people and then I was the head of.And the team has for the grown to 20 people 25 people in the end so I.
[3:39] Seen a lot like how startups of working and how startups can.Get then there’s like six successful yeah that was what I’ve done back then total marketing.You may be wondering how I ended up in blockchain.So that was exactly my next question how do you go from digital advertisement.Into blockchain cryptocurrencies how did this happen and what did he catch the crypto bug.Yeah so my background is there always tech-related right digital marketing is more about.Numbers and statistics then about advertising or about banners or something like that so and,then.2017 hit there were two events which came together and created some kind of momentum for me the one was that the agency was being sold to a bigger competitor which was some kind of exit.
[4:43] That was also the beginning of the end for me because a lot of things have changed youcontact person’s new culture many changes not to the worse,many to the whether I believe but still a lot of changes and I have figured out that my road and that they’re somehow and at the same time as you may remember Bitcoin here,you all time highest back then in 2017 so one road ended another road which.Opened up because I am familiar with Bitcoin since 2011.I didn’t study back then unfortunately the mind and it but kinds but still they are that topic came back into my attention to my attention.That created the momentum to leave a very good job and really great team and to start any complete new adventure.How did he explain it to your friends and your family I know for my for my friends and family it wasnot understandable how I ended up from doing consulting jobs and leading team there’sto being a freelancer and podcaster so that didn’t make sense what was the first reaction you’ve gotten there.
The Founder — Leaving His Position In A Startup To Start His Own Company
[6:05] Yeah I believe most thought I went crazy so.I really had a good job while payment good team people interesting work to do interesting partners and clients so basically everything here.Possibly can seek for and still I left everything behind and started new and I believe after the first.Objects and which were just the price on the face of the people I have told that I believe most of them have understood what I’m seeking for looking for and what I try to teach see if and.I believe well in my opinion I was.It was the perfect time to start and try and start up because I was still young had no family no children so nothing not too much to lose so to say and it was the the one time I thought okay.If I’m gonna do in startup then it’s now the time and not anything later.
[7:11] I see and how did you start in the startup world and how did it lead to tangany.
[7:21] Yeah so the firstthing was of course to create team and first we were two Founders one of my colleagues back then at the agency had,wasn’t the same situation but ConrailRose to know highest and the old path I had ended somehow and while we have figured out okay what do we need in our team we need more Tech experience and some other experience and.But that we have gathered to other members from the same agency which.Somehow a lot of people leaving at the same time but that was the perfect setup because we all know each other for I don’t know.Ten years now and we trust each other and so we decided to start at the same time for the same Adventure some thing in the field of blockchain.Not knowing what it would be finally.I’m very sure the people who remained an old agency there were puzzling with enthusiasm when so many people left at the same time yeah.Most definitely the laughter I see see see see and when you.Every time I talk with new entrepreneurs in your case it’s a little bit different because when I understood it right there were four co-founders but.
[8:46] What was here before we get into what tangany does can you give us a little bit of a hint or I’d use.Because we’ve talked in the past about the importance of your first hires.What did he do there like the first person you hired you didn’t know personally for sometime what was that like for you and what did you learn.
[9:12] Yeah so yeah the 15-member wellone of our four co-founders has left us one year after the start so we were only three co-founders remaining on the fourth member of the team was the first external one and I wouldn’t yeah well I would saywasn’t too much of a challenge because back then at the agency I have created team from,about 25 people I let more than I don’t know 100 job interviews and have selected to the perfect players for the team back then.And basically it was the same motion and shall ensure the tangany of courseit was a bit harder because nobody knew us and we were new and it’s on the field and you have to explain to everybody what you’re doing and why it’s so interesting to work for tangany and what’s the mission and vision era.But basically I only used the experience and knowledge I have gathered and my Chopper before that.
[10:12] ICC we’ve always talking about tangany and you display,those logos so prominently here and maybe the people can see the screenshot we just listening to this.
[10:25] I was wondering could you explain like in layman terms not everybody is a blockchain aficionado on our podcast what you guys,are actually doing and how did you did you find out that there’s a problem that there’s a need you can actually serve with the company.
The Startup — Tangany
[10:46] Just so yeah but we do and.The most simplified way your custodian or a bank for digital assets and digital assets are based on blockchainthe most known one is Bitcoin or theorem but there are many other tokens and projects on based on blockchain like security tokens and we are,custodian regulated custodian wear those,assets can be stored that and we are doing that service for companies in a white labeled manner which means they are using our Tech infrastructure solution.To integrate,blockchain and crypto custody into their product and service so it’s a very technical product and a.Not visible one as our product is invisible invisible it’s only an API interface which makes it very hard to explain it to show but yeah in the end it’s.Getting more simplified by.As production gets adapted and crypto custody is a very well-known service nowadays so you you,not only working in crypto custody since this is a B2B podcast a lot of entrepreneurs Founders and investors are listening to this can you elaborate a little bit more on what you guys.What is your API actually doing what what is the use the utility you guys provide.
[12:15] Yeah sure so the API isit’s the two of our partners our company Partners to use blockchain they are able to create wallets for blockchain they are able to read the balance of volatile many Bitcoins are stored in a specific walletthey’re able to do and transaction via API view will handle the complexity of that so it’s a very Unified.Entry to the world of blockchain one standardized API and they are.They are able to do everything you can imagine doing with blockchain they using that and they do not have to hassle around with all the challenges and yeah.Obstacles that Block Chain still has so it’s a very simply simply fight very to use blockchain and of course doing custody is a very challenging one in terms of security it security is the key.And that is a very.
[13:15] Yeah the approach we have to take to ensure a higher security is another one like doing a usual IT project where security.Can be considered a little bit lower and that is what we are providing from a tech perspective and that is combined with the regulation as being regulated.Our partners for the companies usually do not need to apply for a license themselves with avoids a lot of time costs and nerves because becoming an unregulated financial institute has.Really long way to go yes I totally see that if I would Now understand.It correctly let I’m not a Cody here yes so I would say you guys are kind of the plug-in one would need if one would like to integrate,cryptocurrencies and blockchain in their software for example providing a violet.
[14:18] Yeah fully career that’s exactly what we do so if you have a website mobile app software Works server you.Take out a solution plug it into and boom you got your wallet you go to your Block Chain connectivity and you’re ready to gomr. cabbage is a total assets ha ha and the people are on YouTube have seen you smiling because I was so happy I understood it let us get a little bit back to cryptocurrency custody because,custody used to be the case somebody was there had a very simplified with their had a big world usually,bank and they start their physical assets every since it moved more and more and more and more into digital space so right now most,securities issued for example in Germany just have one paper-based certificate and the rest is all digital,how is cryptic cryptocurrency or crypto custody handled with you guys what are you guys doing what are the obstacles there.
[15:29] About as you already compared to to of all’s you have to do is another custody of money like Euros or certificate options or shares and you have some kind of the New World Orderyeah the total of one and that allows you to store cryptocurrencies but it’s not.Limited to that it’s more like crypto assets and we have a lot ofPartners who are doing tokenization for example tokenization of real estate of Art and yeah either,Collectibles tokenization of other elements like depth or financing and that is already done but.It’s still connected to a certain death certificate certificate sir.CQ Kate yeah that’s so and.
[16:29] So it’s still connected to a physical entity and that’s is about to changethe The Regulators are about to introduce the cryptic security which will be fully digital there will be no longer any physical entity connected to that or attached to that and that will allow you to change vultureman,Market as we will be able to issue tokens on blockchain and that talk will be the actual security not only add a placate of that.Yeah and I would listeners and of use they may remember that we talked to you guys like amazing blocks or big point for example so but.Thing is.
[17:11] Nope person cannot like a retail investor kidnapped show up at your door steps and say I do have a USB stick here and I want to keep it safe with you guys you are just providingthis software for that I would say for example for financial institutions but also for an unregulated entities right.
[17:32] Yeah that’s right so it’s a pure B2B use case for regulated and unregulated partners and they are the one grow,offering the service to the market.Like tokenization Investments or crypt payment crypto Investments whatsoever their use cases or persons cases and we are the one who are.Are powering everything in the back round to ensure that the blockchain component,works as expected just between you and me and like,when two to thirty thousand listeners and viewers of this interview can you give us like a level of paranoid,level how much paranoid you have to be in order to provide a really secure crypto custody solution how high is that level.
[18:26] I believe it’s at the table,cryptic security or the security of crypto assets as another level like doing security for example,on the bank level like Euros because that feared you always know in case anything happens.The Euros are transferred to another bank and you may rot yeah well you have met able to reach out to the bank and to revert that kind of transaction,that is something in the Burrows case that cannot be done with Bitcoins if somebody gets access to the Bitcoins as and it’s transferring to his own wallet there is no way to refer to that incident and for that reason security is everythingand.It took us a very very long time to design the architecture of our product to ensure the highest thinkable security.
[19:24] Yeah would say only the paranoid survive survive especially in the Realms of cryptocurrency I remember at the beginning of the cryptocurrencies there was some guy at a TV station who’s dishwaving his QR code in the camera Tech is Bitcoin with stolen.
[19:43] Yeah there’s so many stories are different scenarios but yeah you have to be really really careful what you do and that also means,your clients meaning another company another client facing company could provide.A crypt of wallet crypto acid custody,with you guys since we’re talking to a lot of people who may or may not be interested in that could you describe a little bit what those companies,could you offer example what your tools your service your software is currently used for.
The Startup — What Customers Could Do With Tangany’S Tool
[20:24] Yes was there are many different use cases as.Blocked in itself is like the internet and if I ask you what can you do with internet there are many answersbut to give a few examples of our partners are doing we have a lot of Partners doing tokenization so the issuance of tokens on blockchain which represent,specific amount of valuefor Real Estate or depth or whatsoever and the the tokens can be bought and purchased andtrade it and you gain your yield for investing in that kind of investment of course that is one major topic that tokenization itself but there is also the crypto.Current to use cases like Bitcoin saving plan emergently would like to save 100 euros per month into Bitcoin automatically how would you do it there are not too many offers services for that.As of knowledge list and one of our partnersprovide such a service you transfer the 100 euros and they are getting invested into Bitcoin and you don’t need to to manage anything on your own so I highly automated solution another one is crypto payments.From the Bitcoins.
[21:47] But also the stable console stereo coins are tokens which are always equally to 1 euro or what dollar which is way more stable yeah.Crypto asset and for that you are able to pay with that and.Few of our partners are doing such to use cases so it’s a very broad range of different use case it’s more likeyou have me use case and you want to figure out where the blockchain canbe beneficial for that and that is a question we can help to answer and in case it’s beneficial to the business case then we are also the one who can provide technews.At of the Regulatory Compliancethat that is good point because people of course down here in the show notes they will be either a link to a blog post with your company website atwere directly linked to your company website depending on the terms of usage and so on and so forth but.I would be interested before somebody gets on your website and starts researching thisare you Limited in terms of a legal regulatory reasons where you could provide your software let’s say to financial institution in Europe,in China in the u.s. are there any limits.
[23:12] Yeah regulatory aspects are very important and a good topic so,they’re all countries where we are not able to offer service of course because there is no regulation in place which is.
[23:27] Lotso.
[23:30] And in the year where what we can provide our what kind of Regulation we bring in case-by-case analyzers becauseyou have our B2B partner and the partners also Target Group which usually the retail market and.Every case is different so we have to look into where is the partner located where are his customers located and who is doing what kind of service and.While figuring out the scenario here then we are able to tell our partner whatlicenses might be necessary but you’re might be able to bring in and what might be needed to clarify with the regulators and the with the jurisdictions.Hi I never forget the taxes they always screw you up yeah indeed.Okay so I think most people will get no a will now have a rough idea of what you guys are providinglet me get one of the standard questions still out of the way here are you guys open for external investors are you currently looking for capital or would you be open if some we see reaches out and you say oh let’s take the call.
[24:49] Yeah so it did a round last year in January so exactly one year ago and we are planning.Another one so if somebody is interested in the use case obviously looking forward to get in touch but there’s nothing specifically to announce yet assuch potential investment round is still in the preparation phaseat the time of recording this we are not sure if there’s a crypto you’re coming but would you be happy if the Euro will be.Come at least a part or totally plot chain based would that be big business for you guys.
The Startup — A Digital Euro Would Be A Huge Use Case
[25:31] Yeah most definitely the total Europe is the blockchain or pure really huge use case imagining that every.Citizens in the European Union needs and walletlet’s say very very you to opportunity for service providers like ourselves to provide our service to Banks so that they are able to provide the Crypt of Allah to their customers but I’m not so sure to be honest.I’m to whether to the digital year of Bill and up on the blockchain or on anotherdigital solution so that needs to be figured out a lot of other central banks have chosen a blockchain Cora at least as far as I know which is some kind of blockchain a private one.But not sure where the ECB will end up finally but I’m very convinced that the Italy Europe will be introduced in some way or another.I’ll make myself a reminder and when the decision is made to have a digital Euro onsome type of block trade I’m sure to share this into you again and I’m sure investors will take notice thank you very much was just a pleasure having you here looking forward to speak to you again.
[26:49] Yeah thank you Joe for having me today and looking forward seeing you again soon.
[26:57] Music.
[27:03] Reviews at www.starballroomdancestudio.com.
[27:08] Music.
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