Binance Backs World’s First Decentralized Bank
Binance — the biggest cryptocurrency exchange in the world by trade volume — has reportedly acquired a five percent stake in Founders Bank, which plans to be the world’s first decentralized bank. This five percent stake in the Malta based start up is said to be worth around $155 million.
According to Binance, Founders Bank plans to utilize blockchain technology to manage and run its overall platform mechanics. The bank is also reportedly partnering with the fundraising platform Neufund to develop its own on-platform equity token.
In the end, if Founders Bank is able to land licensing from the EU and European Central Bank, the startup will become the world’s “first decentralized and community-owned bank,” as the future token holders of the platform will hold legal ownership of the bank.
Silvio Schembri, a junior minister within the Office of the Prime Minister of Malta, recently announced that the island “is honored to be chosen as the location of the first global community-owned bank.”
Malta has now made quite a name for themselves in the blockchain space as they continue to work towards being a “blockchain island.” In fact, Binance itself has recently announced plans to set up an office and fiat-to-cryptocurrency exchange on the island.
Changpeng Zhao, Binance’s CEO, has already commented on the island’s progressive blockchain regulations via twitter saying, “Malta is the fusion ground for traditional and blockchain finance now. A lot can happen in 3 short months.”