Cryptocurrency payment service TokenPay purchased a 9.9% stake in Germany’s WEG Bank, and gifted a 9.9% stake to the Litecoin Foundation to forge a partnership. In return for the stake, the Litecoin Foundation agreed to provide technology and marketing expertise for TokenPay’s blockchain initiatives including the TPAY cryptocurrency, eFin decentralized exchange, TokenSuisse asset management, WEG Bank’s FinTech platform, and a multi-signature transaction engine.
Charlie Lee, founder of Litecoin and director of the Litecoin Foundation, says, “This partnership is a huge win-win for both Litecoin and TokenPay. I’m looking forward to integrating Litecoin with the WEG Bank AG and all the various services it has to offer, to make it simple for anyone to buy and use Litecoin. I’m also excited about Litecoin’s support in TokenPay’s eFin decentralized exchange.”
The CEO of WEG Bank, Matthias von Hauff, says, “The partnership with innovative institutions such as TokenPay and Litecoin might at first come unexpectedly for a very conservative institution like us. But we have thoroughly and diligently examined the prospects of a common future, and we became convinced that the future of banking will make adoption of such modern payment methods inevitable. We are therefore proud to have teamed up with the best in the field.”
Under German law, no entity can buy more than a 9.9% share in a bank without regulatory approval. If TokenPay receives approval they plan on buying up all the shares of WEG Bank. This is a big if, since it would probably be the first time in history that a cryptocurrency firm purchased an entire bank, and would be major positive news for the crypto world. They want to keep the Litecoin Foundation on board as a strategic partner, so the Litecoin Foundation would keep its stake even if TokenPay takes over WEG Bank.
Due to its partnerships with the Litecoin Foundation, WEG Bank and Verge, TokenPay is expecting to get several hundred thousand customers when it releases its crypto debit cards. Indeed, the fact that TokenPay has a large share in a bank sets the foundation for an ideal fiat to crypto exchange service for cryptocurrency traders. Oftentimes, centralized actions by banks are the biggest hindrance to trading crypto for fiat, but since TokenPay now owns a part of WEG Bank, it is likely it won’t face much banking problems.
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