World’s largest cryptocurrency exchange invests in Founders Bank
Binance has announced its investment in Malta-based Founders Bank, a company that intends to offer banking services tailored for the needs of tech and cryptocurrency businesses.
Founders Bank has applied for a banking license in Malta and is currently awaiting regulatory approval. Once licensed, the company claims that it would be the first decentralized and community-owned bank worldwide.
Among the banking products and solutions to be provided, Founders Bank will offer banking accounts and credit cards. Users will be able to access their accounts through mobile and desktop web apps. The company said it estimate to launch to be in the first half of 2019.
Commenting on his company’s investment into Founders Bank, Changpeng Zhao, founder and CEO of Binance, said: “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.”
Founders Bank will conduct an offering through blockchain-based equity fundraising platform Neufund and will be issuing its own legally-binding equity tokens. The equity token offering will be conducted on under German regulation in collaboration with “one of Europe’s major stock exchanges” later this year.
Silvio Schembri, Junior Minister for Financial Services, Digital Economy and Innovation within the Office of the Prime Minister of Malta, welcomed Founders Bank “with the utmost excitement and hope that their fintech solutions will attract even more world-class companies to our #BlockchainIsland.”
“We are honored to be chosen as the location of the first global community-owned bank that cares so deeply about transparency and regulation,” Schembri said.
Malta is on the path to becoming a blockchain and cryptocurrency hub, with three bills on cryptocurrency and blockchain that recently passed, all designed to fulfil the country’s ambition to become the “Blockchain Island.”
The government’s supportive stance towards cryptocurrencies has caught the eye of some of the world’s biggest cryptocurrency companies. Binance, Neufund and BitBay are amongst the many startups in the space that have chosen to relocate to the EU member state.
The supervisory board and management of Founders Bank include entrepreneurs, bankers and industry experts such as Dr Abdalla Kablan, Martin Bruncko, André Eggert, Pavel Bodark, Sonal Kadchha, Paula Pandolfino and Jonathon Gowen. Michael Bianchi serves as chairman of the board.