Cryptocurrency exchanges and startups are trying every day more and more to integrate their services with traditional financial institutions. This is the case of Binance, one of the most successful crypto startups, that has announced that it will contribute to creating a new type of decentralized, token-based community bank on the island of Malta. This, according to information taken from an article published by Bloomberg.
Binance has been making headlines lately, by being one of the most successful exchanges this year, being capable of raking in revenues by more than 500 million dollars even with the disastrous fall that the cryptocurrency market has experienced. Now they announce that they will be part of one of the most revolutionary ideas ever: a decentralized bank.
They will invest 5% of a combined stake of more than $100,000,000 by other cryptocurrency startups and investors that have also agreed to build this initiative. The bank, correctly named “Founders Bank”, will be based in Malta, a European island that has issued friendly cryptocurrency laws, and that gave Binance safe haven earlier this year when the exchange faced heat from Japanese regulators because they were operating without a license.
Of course, the regulators would have to review all the paperwork and rule that this kind of new startup is indeed legal, but they are optimistic about it because Malta has been a crypto paradise for investors till now. Supposedly, the sale of the bank tokens would be done through a third party startup called Neufund, issuing their bank-tokens and distributing them.
Maltese government members are excited about what is coming next, and some have expressed their favorable opinion about this fact, like Silvio Schembri, the junior minister of digital economy, that declared:
“WE ARE HONORED TO BE CHOSEN AS THE LOCATION OF THE FIRST GLOBAL COMMUNITY-OWNED BANK”
This is one of the latest actions that Binance has taken in order to push cryptocurrencies (and itself as an exchange) to notoriety. Of course, they will have to pass all kind of checks and regulations, but if this really happens, it will be an important thing for cryptocurrencies as a whole.