Binance Invests in the World’s First ‘Decentralized, Community-Owned, and Blockchain Friendly’ Bank

On weekday (12 July 2018), a FinTech startup known as Founders Bank proclaimed its Binance-backed commit to came upon the world’s initial “decentralized, community-owned, and blockchain friendly” bank in Malta (“Blockchain Island”). the corporate aims to launch someday throughout the primary half 2019, providing that it receives a banking license from Malta monetary Services Authority (MFSA), that mustn’t be an excessive amount of of a tangle given the support of Silvio Schembri, the Junior Minister for monetary Services, Digital Economy, and Innovation at intervals the workplace of the Prime Minister of Malta:

“Yet again Malta proves to be the ultimate destination for innovative companies changing the world for better. We welcome Founders Bank with the utmost excitement and hope that their fintech solutions will attract even more world-class companies to our #BlockchainIsland. We are honoured to be chosen as the location of the first global community-owned bank that cares so deeply about transparency and regulation .”

According to a Bloomberg, crypto exchange Binance features a five-hitter stake within the new company “alongside different anchor investors at a 133 million monetary unit ($155 million) pre-money valuation.” The support of Binance isn’t shocking since Binance has chosen Malta as its new base of operations and therefore the focus of the planned new bank is serving “tech and crypto businesses.”

Founders Bank is about to raise further funds through associate degree Equity Token providing (ETO) on Neufund, a platform for primary offerings of securities (“equity tokens”) as wrongfully binding good contracts on the Ethereum blockchain. Neufund says such equity tokens area unit “technologically increased quasi-shares that area unit as simple to get and trade as cryptocurrencies, nevertheless provide the investors and issuers legal protection kind of like classical types of VC finance.”

Michael Bianchi, Chairman and Co-founder at Founders Bank stated:

“Founders Bank is the missing piece of #BlockchainIsland on Malta. We are proud to announce our progressive banking solutions tailored for the needs of decentralised companies, with already existing support from the leaders of the blockchain industry, including Binance and Neufund. I am excited about the upcoming equity token offering when everyone will be able to become the co-owner of the company and shape the future of banking with us! ”

And here is what Changpeng Zhao, Founder at Binance had to mention regarding the company’s latest investment:

“We are not only excited to be one of the first investors of this inclusive community for this pioneering initiative, but also look forward to explore the full range of its banking services. We continue to be delighted by the vibrant blockchain opportunities in Malta, and look forward to launching more partnerships in the region.”

In its journal post asserting today’s news, Founders Bank created the subsequent fascinating comment regarding its coming ETO:

“The equity token offering to be conducted on Neufund under German regulation in collaboration with one of Europe’s major stock exchanges later this year, will allow all market participants to become co-owners of Founders Bank. This is pioneering as it will allow our clients to decide on the development of the solutions they are using with blockchain-style governance model based on smart contracts.”

On four July 2018, Malta became the primary country within the world to determine a full legislative framework for distributed ledger technology. and therefore the institution of a crypto friendly bank on this island nation can solely create it a a lot of enticing destination for each new crypto entrepreneurs and existing crypto businesses presently primarily based elsewhere.