A Maltese bank is looking to give blockchain and cryptocurrency firms easier access to bank accounts. Moreover, the project is backed by industry behemoths, including the major cryptocurrency exchange Binance and blockchain-powered equity fundraising platform Neufund.
The Mediterranean island nation of Malta has lately been positioning itself as a hub of sorts for all things cryptocurrency. Sometimes referred to as ”Blockchain Island”, Malta provides a safe haven for blockchain and cryptocurrency-related ventures seeking a lax regulatory environment.
Nonetheless, blockchain and cryptocurrency startups based in Malta have reportedly faced issued when it comes to gaining access to bank accounts. The new ”Founders Bank” looks to alleviate this issue, through providing ”progressive fintech solutions to the world of innovation and blockchain”.
Founders Bank also intends to have its token investors effectively owning the bank. This would make the bank the first major high tech financial solution which is both owned and focused on its founders, making it community-owned and providing a vital link from the traditional financial world to cryptocurrency companies.
Founders Bank hopes to obtain an EU license to allow it to formally operate its banking business. Provided that the bank is successful in doing this, the bank would become the world’s ”first decentralized and community-owned bank”.
The bank has already received its fair share of praise. Malta’s Junior Minister for Digital Innovation and Financial Services, Silvio Schembri, stated that this marks a significant development for Malta. Moreover, Founders Bank has partnered with the German Neufund platform.
The partnership with Neufund is intended to facilitate Founders Bank’s equity token offering later this year. In addition to this, it will reportedly follow German regulations, and let all investors become co-owners of the bank.
Furthermore, Bloomberg recently reported that Founders Bank has also received backing from the cryptocurrency exchange Binance, which acquired a 5% stake in the company at a $155 million pre-investment valuation.
Binance has been investing in several different blockchain-related ventures in Malta during the past few months, quickly becoming an integral part of the island’s growing cryptocurrency sphere. The addition of Binance as a stakeholder in Founders Bank is, nonetheless, an undoubtedly positive circumstance.
At the moment, Founders Bank is waiting to obtain its banking license from Maltese financial authorities. Even so, the service intends to launch its Equity Token Offering on Neufund later in 2018, and the main service is slated for launch in early 2019.
Toshi Times has previously covered how the Maltese parliament recently passed three cryptocurrency-friendly bills. Notably, this comes after the major cryptocurrency exchange Binance relocated from Hong Kong to Malta earlier this year, due to regulatory concerns.
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Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the blockchain industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.