Binance working on setting up a bank in Malta with the help of crypto investors 18266
News
Varun
Jul 12, 2018 at 7:19 PM

Binance, one of the leading crypto exchanges in the world, is backing a plan to set up a bank in Malta. The bank is said to be owned by several crypto investors from around the globe.

The island of Malta is known to be very crypto-friendly. Recently, Binance had made an announcement that it would be expanding its base to Malta as well, thereby creating a few job opportunities in the area. Now, they have made news again by announcing that Malta will be the home of the Founders bank. In fact, Binance exchange has a 5% stake in the bank already.

Surprisingly, the bank is valued at a whopping $155 million already even before it’s launch. For the bank to launch successfully, it would require a license from the European regulators in Malta and should obey the rules put up by the association. But what’s so special about this bank that it has drawn the attention of the crypto community?

The Founders bank would be the world’s first decentralized bank. Moreover, it is a community-owned bank (which is also the first of its kind) and is backed by a blockchain. However, the bank authorities are awaiting the approval of the necessary permits.

Silvio Schembri, Junior minister for financial services, digital economy and innovation of Malta, said, “We are honored to be chosen as the location of the first global community-owned bank”.

The initial investment itself is a huge milestone for the bank. Further, the authorities plan on issuing the bank’s own “legally-binding equity tokens”, which essentially mean a new digital token. Now that the bank is backed by Binance exchange, chances run high that the bank would make big news soon in the crypto and blockchain community.

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