Binance in Malta is backing plans to create a blockchain-based bank with tokenized ownership, according to Crowdfund Insider.
The world’s second largest crypto exchange had already announced its move to Malta in March and has set up a bank account on the island, thus demonstrating that Malta is moving ahead with industry-friendly regulations to facilitate its plans to become a major cryptocurrency hub.
The blockchain-based financial institution which will be known as the “Founders Bank” will become the world’s first decentralized, community-owned bank, and participants will be issued with “legally binding equity tokens” in return for their investment.
The blockchain-based equity fundraising platform Neufund will issue the tokens. The German-based company which has a base in Malta but retains its HQ in Germany, is said to have raised USD 11 million from well-known investors in 2017. Binance and Neufund are also reported to be partnering with one of Europe’s main stock exchanges later this year, although no names have been thrown into the hat as yet.
Binance Tweeted on its plans for the new bank:
“Founders Bank will become the first stable high-tech banking solution, not only focused on founders but also owned by them, bridging the gap between traditional financial world and innovative crypto companies.”
The bank’s first step will be to seek a licence from Maltese regulators. Malta has already approved three DLT and crypto-related bills which pave the way for new businesses to the island. Silvio Schembri, Junior Minister for Financial Services, Digital Economy and Innovation within the Office of the Prime Minister of Malta, stated that the island “is honoured to be chosen as the location of the first global community-owned bank”. He added:
“We welcome Founders Bank with the utmost excitement and hope that their Fintech solutions will attract even more world-class companies to our Blockchain Island.”
Schembri is known for being the leading advocate on Malta for pursuing an innovation economy build on blockchain and Fintech development.
Binance also recently opened a new crypto-fiat trading platform in Uganda, which supports the Ugandan shilling, alongside major cryptocurrencies.
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