Binance Is Going to Build World’s First Decentralized Bank in Malta
Binance, one of the world’s largest cryptocurrency exchanges, has announced an investment in Malta-based Founders Bank.
Binance has taken a 5% stake alongside other investors at €133 million (US$155 million) pre-money valuation, according to their announcement.
Founders Bank is aiming 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 Neufund under the German regulation in collaboration with one of Europe’s major stock exchanges later this year, allowing all market users to become co-owners of Founders Bank.
Before launching, Founders Bank needs a license from regulators in Malta, a member of the European Union, and approval from the European Central Bank. Once licensed, the start-up Founders Bank is predicted to be the first decentralized and community-owned bank in the world.
“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,” said Zhao Changpeng, founder and CEO Binance.
Michael Bianchi, Chairman and Co-founder of Founders Bank, said, “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! ”
“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,” said Silvio Schembri, Junior Minister for Financial Services, Digital Economy and Innovation within the Office of the Prime Minister of Malta.
Several months back, Binance announced to move its operations to Malta after getting a warning letter from Japan’s Financial Services Agency that said it was operating in Japan without a license.