Crypto exchange Binance to back decentralized bank in Malta

Monday 16 July 2018 09:34 CET | News

Binance, a large cryptocurrency exchange, is reportedly among a number of investors backing a decentralized bank to be launched in Malta, according to CoinDesk.

The exchange had confirmed it has acquired a 5 percent stake in the so-called Founders Bank at a EUR 133 million pre-investment valuation, CoinDesk has cited Bloomberg. Founders Bank will have systems based on blockchain technology and will partner with fundraising platform Neufund in an issuance of its own “legally-binding” equity tokens, according to Binance.

However, in order to officially operate its business, the bank is hoping to obtain a license from the EU state’s government. If approved, the bank might become the world’s “first decentralized and community-owned bank,” as per the report, with token investors effectively owning the bank.

Binance, which was founded in Hong Kong in July 2017, revealed in March 2018 that it planned to set up an office and fiat-to-cryptocurrency exchange in Malta. In June 2018, Binance further announced it is backing a program by the Malta Stock Exchange to support fintech startups and entrepreneurs.

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Keywords: Binance, cryptocurrency, crypto exchange, distributed ledger technology, crypto bank, Malta, Neufund
Countries: World