Binance Backs the World’s First Decentralized Bank in Malta
Binance, one of the world’s largest digital currency exchanges by trading volumes, has become an investor backing for launching the world’s first decentralized bank in Malta.
According to Bloomberg, Binance has taken 5 percent stake in the decentralized bank named Founder Bank, at a 133 million-euro ($155 million) pre-money valuation.
The Founders Bank will have a blockchain based system, and will cooperate with the blockchain powered fund-raising platform Neufund in order to issue its own “legally-binding equity token”. Instead of owned by a single corporation, person, or entity, it will be owned in part by anyone who purchases a portion of its token-based equity.
According to Binance, the equity-token sale would be conducted under German securities law in collaboration with one of the major stock exchanges in Europe later this year, while no names have been mentioned by now.
After getting a license from regulators in Malta, Founders Bank will become the “first decentralized and community-owned bank in the world”. Binance believes the Founders Bank represents the future of the banking industry:
“Founders Bank will become the first stable and 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.”
Silvio Schembri, junior minister for financial services, digital economy and innovation within the Office of the Prime Minister of Malta indicated that, the concept of the Founders Bank may sound confusing at present but he believes that it will form the base of a new economy in the future.
“Just as we attribute value to pieces of paper, so too will future generations attribute value to electronic storage systems.”
The news of the decentralized bank comes barely a week after the Maltese Parliament approved three blockchain and crypto bills aimed at building a better environment for the cryptocurrency and blockchain ecosystem and attracting blockchain-based businesses to set up in the country.