Crypto Exchange Binance Is On Track to Set Up First Community-Owned Bank in Malta
Leading cryptocurrency exchange Binance is reportedly backing plans to develop the first decentralized and community-owned bank.
According to Bloomberg, Binance has acquired a 5 percent stake at a $155 million pre-money valuation alongside several other investors in the Founders Bank. The bank will operate from the Island of Malta and will obtain a license from the regulators upon launch.
The Maltese government is reportedly positive about the prospect of a bank owned by crypto investors. Junior Minister for Financial Services, Digital Economy and Innovation Silvio Schembri said in a statement: “We are honored to be chosen as the location of the first global community-owned bank.”
The Founders Bank aims to be the first decentralized and community-owned bank in the world. In an email to Bloomberg, Binance said its investment is ‘the first step toward an offering that Founders Bank will conduct through the blockchain-based equity fundraising platform Neufund’. The Founders Bank aims to issue ‘its own legally-binding equity tokens.’
According to reports, all market participants will be equal co-owners of Founders Bank, which allows investors and customers to decide on what direction the bank is heading to and what the strategy will be. The report further noted that the Bank will use Smart contracts for governing.
In the meantime, the second largest cryptocurrency exchange is looking to expand its user base by offering fiat-to-crypto trading. It already launched Binance Uganda where fiat can be traded against cryptocurrencies. The exchange further plans to add euro/crypto trading pairs as soon as it gets a banking license in Malta.