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Malta’s Move for Decentralized Bank Gets the Backing of Binance Crypto Exchange

Malta’s Move for Decentralized Bank Gets the Backing of Binance Crypto Exchange

Malta gets the big boost from Binance cryptocurrency exchange for its move towards establishing a first decentralized bank in the country. The little island has recently seen about a plan of a token-based bank by a renowned businessman. This would mean that the biggest hurdle of accessing bank accounts by crypto and blockchain-associated firms would get sorted out at least in the island. The country is already getting enough attention for its friendly atmosphere towards the digital coin sector.

Progressive Fintech Solutions

Founders Bank is created specifically for the purpose of offering ‘progressive fintech solutions’ to blockchain and those who are keen on innovation. Neufund, which is a blockchain-based platform for equity fundraising, and Binance, the biggest cryptocurrency exchange in terms of turnover, have aligned for the project. The new financial service provider claimed that it would be the first high tech banking solution to bridge the gap between the innovative digital coin firms and the conventional financial service providers. It is owned by the founders to offer a stable solution in the emerging sector.

Silvio Schembri, Malta’s Junior Minister for Digital Innovation and Financial Services, termed the development as a big one for the little island, ccn.com reported. He said, “This is another block to our ever growing blockchain island ecosystem. Next week we will announce other complementary projects that will continue to close the circuit for the system to function. The culmination of which will be exhibited during the Government backed DELTA Summit to be held between the 3 – 5 October in Malta”. The country appears to be not worried about any negative sentiments about the virtual currency sector.

The Founders Bank indicated that Neufund would conduct the equity token offering under the regulation of German. It would also collaborate with one of the big stock exchanges in Europe later in the year so that market participants could become the bank’s co-owners. This is considered as a pioneering concept since it would enable clients to take a call on the solutions development with the help of blockchain technology model.

Binance’s founder and CEO, Changpeng Zhao, claimed that Founders Bank is the first in the world to become a decentralized and community-owned bank. He said that he was not only excited about the innovative concept but is also looking to offer various banking services. The exchange will also look for more partnerships in Malta citing vibrant blockchain opportunities.

Top-Notch Solutions

The Founders bank would concentrate on offering ‘top-notch’ banking solutions to enterprises, i.e., whether it is tech or otherwise. Users could be in a position gain access to their bank accounts from a desktop or mobile applications. They would also be allowed to use credit cards that would be provided by the bank.

In a nutshell, the system would be much similar to that of Revolut, which is an online bank providing services to the crypto community. However, the bank is yet to get a license from the Maltese financial authorities. Once the Founders Bank gets the banking license, it could launch services early next year. A well-known businessman, Michael Bianchi, is the chairman and co-founder of the bank.

About the author

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John Creech

John is a Tech Journalist. He has been passionate for the cryptocurrencies for over 4 years now. He loves writing about technological advancements and always seeks to analyse what future will bring to us.

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