One of the largest crypto-exchanges Binance has confirmed it will invest in the first decentralized bank ever, called the Malta Founders Bank.
Founders Bank will be unique, as it does not belong to any corporations, individuals or legal entities. Instead, it will belong to anyone who buys tokens of the bank. Such a system will allow owners of tokens to participate in management of the bank through a smart contracts system. Fundraising for the project will be carried out on the Neufund platform. It is assumed that the core customer base of the bank will comprise of technological and fintech companies.
According to the publication, Binance has invested a five percent stake in the bank with a pre-investment estimate of $155 million (€ 133 million). CEO of the exchange Changpeng Zhao believes that Malta is a place where traditional and blockchain finance meet.
Why it is important
- Founders Bank will use the blockchain-based system to cooperate with a fundraising platform Neufund with the goal of issuing its own share-tokens, the owners of which will have legal obligations.
- The Maltese bank expects to receive a European license to begin providing financial services legally. If granted, Founders Bank will become the world's first decentralized bank belonging to the cryptocurrency community.
Binance was launched in Hong Kong in July 2017, but in March this year the company has announced its intention to move to Malta. The island state positions itself as an "blockchain island" and has recently adopted a package of bills aimed at regulating the digital sphere.
In June, Binance joined the MSX FinTech Accelerator Program, which supports fintech projects and crypto startups in Malta, the local Stock Exchange informs.
By Ekaterina Ulyanova