Crypto Exchange Binance Backs World’s First Tokenized Bank In Maltabr>
According to Bloomberg, Binance has acquired a 5 percent stake, along with other anchor investors, at a €133 million euro ($155M USD) pre-money valuation. The bank aims to deliver progressive FinTech solutions in the world of innovation and blockchain and will issue its own “legally-binding equity tokens.” The offering of equity token will be conducted on fundraising platform Neufund, under German regulations.
Before launching operations, the bank will need a license from regulators in Malta, a member of the European Union, and approval from the European Central Bank. If successful, Binance said Founders Bank will be the world’s “first decentralized and community-owned bank,” with token investors effectively owning the bank.
“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,” Binance said.
Silvio Schembri, a junior minister within the Office of the Prime Minister of Malta, said in a statement that the island of Malta “is honored to be chosen as the location of the first global community-owned bank.”
“This is another block to our ever growing blockchain island ecosystem,” Schembri said. “Next week we will announce other complimentary projects that will continue to close the circuit for the system to function. The culmination of which will be exhibited during the government backed DELTA Summit to be held between the 3 – 5 October in Malta.”
In March of this year, Binance revealed that it planned to set up an office and fiat-to-cryptocurrency exchange on the island. Last month, the company announced that it was backing Malta Stock Exchange‘s newly launched startup accelerator program, which aims to support and mentor crypto startups and entrepreneurs to become more competitive.
“We continue to be delighted by the vibrant blockchain opportunities in Malta and look forward to launching more partnerships in the region,” said Changpeng Zhao, Founder and CEO of Binance.