Binance Will Open Decentralised Bank In Malta

The hype surrounding Malta and the country’s progress in terms of blockchain technology doesn’t seem to stop – the island took the world by storm with the new legislation and forward-thinking government.

Only a week the Maltese Parliament approved three blockchain and crypto bills unanimously, one of the biggest cryptocurrency exchanges worldwide – Binance will open a decentralised bank in Malta in cooperation with Neufund and the so-called Founders Bank.

As reported by Bloomberg on the 12th of April, Binance acquired a 5 percent stake in the Founders Bank at a €133 million euro ($155 million) pre-investment valuation.

Changpeng Zhao, Binance’s CEO, commented:

“We are not only excited to be one of the first investors of this inclusive community for this pioneering initiative, but also look forward to exploring the full range of its banking services. We continue to be delighted by the vibrant blockchain opportunities in Malta and look forward to launching more partnerships in the region.”

Binance announced at the beginning of this year plans on setting up their offices in Malta and was one of the first companies to benefit from the favourable to blockchain legislation.

How Will The Decentralised Bank Work?

The news is somewhat surprising as the current Maltese banking system is well-known for its hostile attitude towards cryptocurrency, and the lack of understanding for blockchain technology.

However, the CEO of Binance and Neufund have identified a solution – The Founders Bank which will introduce a change and build a bridge between the traditional banking world and innovative crypto businesses. The bank would be the first one to provide progressive FinTech solutions to the world of blockchain.

Changpeng Zhao, Founder and CEO of Binance explained that Founders Bank would be the first decentralised and community-owned bank in the world. The Bank will be based on blockchain technology and will partner with a Maltese-based fundraising platform, Neufund, to issue legally-binding equity tokens.

This pioneering solution will allow everyone to become co-owners of the bank and it will give them the right to make decisions about the development of the solutions that would be implemented. Hence, the name – Founders Bank.

Silvio Schembri, Junior Minister for Digital Innovation and Financial Services Silvio Schembri, said that this was indeed a huge development for Malta:

“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”.

Why Should You Be Excited?

If you have ever come across Revolut, then you’d have noticed the massive difference between the latest FinTech banking sensation and your traditional bank account. The easiness in which it operates, less bureaucracy and in-built cryptocurrency exchange are what urged millions of customers to switch to Revolut.

Similarly, the Founders Bank will be offering the top-notch banking solutions, taking it to the entirely new level thanks to the blockchain. The bank is most likely going to become the go-to place for any blockchain-based company trying to settle down in Malta.

The Chairman and Co-founder of the bank is Dr Michael Bianchi, a well-known businessman. He stated:

“Founders Bank is the missing piece of #BlockchainIsland on Malta. We’re proud to announce our progressive banking solutions tailored to the needs of decentralised companies, with already existing support from the leaders of the blockchain industry, including Binance and Neufund (…).“

The supervisory board and management of the company includes experienced entrepreneurs and industry experts with Mr. Michael Bianchi serving as Chairman of the Board, Dr Abdalla Kablan, Martin Bruncko, André Eggert, Pavel Bodark, Sonal Kadchha, Paula Pandolfino and Jonathon Gowen with previous experience working in blue chip companies and institutions such as a Barclays, JP Morgan, Deutsche Bank, the European Commission, the World Bank, Deloitte, OECD and Deloitte.

Binance will open a decentralised bank in Malta after receiving a banking license from the Maltese authorities, and it should launch in early 2019 through an Equity Token Offering that will be made through Neufund’s platform later in 2018.

Read more about Malta’s blockchain and cryptocurrency regulations.