Binance, one of the world's largest cryptocurrency exchanges, aims to lay the foundation for Malta's first decentralized bank, owned by digital asset holders.
The Maltese islands continue to be among the main driving forces in the crypto and blockchain space with new developments happening almost every day. Now the first decentralized bank, Founders Bank, is being created on crypto-loyal island.
The total pre-investment valuation of the project is 133 million Euros (155 million US dollars), and Binance has acquired a 5 percent stake in the investment. Such equity participation in the new project is another serious step by the exchange towards combining the crypto sector with traditional banking services.
Binance and other promoters of the Malta-based blockchain project have said they aim to turn the startup into the first decentralized and community-owned bank, subject to obtaining the necessary regulatory approvals.
Founders Bank will use blockchain-based systems and run its offerings through blockchain fundraising platform Neufund. Founders Bank plans to issue its own equity digital assets - tokens with legal obligations. The token sale is planned to be held during this year in accordance with European regulatory rules, with the support of one of the leading stock exchanges in Europe. Details of the token sale have not yet been disclosed. The project of the first decentralized bank has yet to be licensed in Malta and receive approval from the European Central Bank to legalize financial services.
Binance believes that there will be no problems obtaining a license. The news comes just a week after Malta passed three laws aimed at encouraging blockchain-based businesses. Binance noted that the adopted bills have created a favorable environment for startups and eliminated the uncertainties associated with the decentralized asset market.
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