Binance to Support Decentralized Bank in Malta
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Binance to Support Decentralized Bank in Malta

The hype surrounding the little island of Malta, where crypto space is developing day by day, continues to take new turns with every new announcement. Now, a token-based bank has been announced.

The bank claims that it will become the first high tech and stable banking solution which will be not only focused on the founders but will also be owned by them. It will thus bridge the gap between the traditional financial world and the innovative crypto companies. Binance is exploring opportunities to launch the bank.

The interesting point is that the project is a collaboration between the world’s largest crypto exchange in terms of turnover, Binance, and the blockchain based equity fundraising platform Neufund.

The bank will be providing services to tech and business companies and will also offer ‘top-notch’ banking solutions. Users will be able to easily access their bank accounts using mobile phones and desktop applications and use them with the help of credit cards that will be issued by the Founders bank.

The equity token offering that will be conducted on Neufund under the regulation of the authorities in Germany and in collaboration with one of Europe’s major stock exchanges later this year, will allow market participants to become the co-owners of the Founders Bank. This step is pioneering as clients will be able to decide on the development of the solutions that they are using, with the help of blockchain style governance model which will be based on smart contracts.

Another thing to be noted is that the difficulties encountered by the blockchain industry and crypto companies to gain access to the bank accounts have been one of the major stumbling blocks for the so-called ‘Blockchain Island’. Founders Bank is about to change this by providing ‘progressive fintech solutions to the world of innovation and blockchain’.

Binance had confirmed it has acquired a 5 percent stake in the so-called Founders Bank at a €133 million euro ($155 million) pre-investment valuation. Commenting on this breaking news the CEO of Binance, Changpeng Zhao, said,

“Malta is the fusion ground for traditional and blockchain finance now. A lot can happen in 3 short months.”

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Aayushi Dhawan
Aayushi Dhawan is an avid reader, researcher, crypto writer and a passionate student. While pursuing her graduation in commerce at SRCC, she realized that writing and Finance give her immense pleasure. She is currently pursuing her post graduation in Commerce (Finance) from Department of Commerce, Delhi School of Economics and keeps on exploring the intricacies of research, her biggest strength.