Banking

Binance exchange backs world’s first decentralized bank

Binance, the world’s largest cryptocurrency exchange by traded value is launching a new bank with digital-coin investors as founders.

According to Bloomberg, Binance announced that it has acquired a 5 percent stake in the new Founders Bank at a €133 million euro pre-money valuation.

Founders Bank is planning to become the first decentralized and community-owned bank in the world. According to the publication, it will conduct its offering through the blockchain-based equity fundraising platform Neufund, issuing its own “legally-binding equity tokens.”

Binance CEO Zhao Changpeng confirmed the news in Twitter.

“Malta is the fusion ground for traditional and blockchain finance now. A lot can happen in 3 short months”.

Bloomberg states that Founders Bank will need a license from Malta regulators, as well as approval from the European Central Bank.

Let us remind that at the end of March, Binance announced about setting up operations in Malta “due to its existing pro-blockchain legislation and the stability that it offers financial technology companies through its regulatory framework”.

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