German digital bank N26 will be ready for an initial public offering (IPO) by the end of 2022, CNBC reported citing N26’s co-CEO Maximilian Tayenthal.

“By the end of the year, N26 will be structurally IPO-ready,” Tayenthal told the publication in an interview.

Tayenthal and Valentin Stalf founded the digital bank in 2013, which offers services such as a fee-free checking account via an app.

N26 could launch an IPO as early as 2024, Tayenthal said, adding that it is in no hurry to go public.

Notably, in October 2021, N26 had raised $900m in a Series E funding round, which valued it over $9bn. It counts PayPal co-founder Peter Thiel, Coatue Management and Dragoneer as investors.

“We are not stressed to enter the public markets anytime soon. The private markets have proven to be incredibly liquid,” he noted.

The news comes as the global markets have been rattled by the geopolitical tensions caused by the Russia-Ukraine conflict.

Furthermore, a potential interest rate hike by the US Federal Reserve and other major central banks has also been a cause of concern because tech firms often rely on debt financing for expansion.

The potential rate hike will not put off N26, Tayenthal said, adding that “we are one of the companies that actually have a hedge on rising interest rates. N26 is a liquidity-generating machine.”

In an event of the dramatic rise in rates, N26 would become “self-sustaining”. Higher rates for banks means, a higher yield on cash deposits.

N26, which has not been able to turn a profit yet, announced its plans to exit the US market to focus on European business in November 2021.