Kirkwood Bank of Nevada now acquired by Blockchains LLC CEO for $28 million

02 Jul, 2019
by Colin Hawkins
News
Kirkwood Bank of Nevada now acquired by Blockchains LLC CEO for $28 million

CEO of Blockchains LLC, a blockchain incubator and investment firm, has purchased the Kirkwood Bank of Nevada, for $28 million, as reported by The Nevada Independent on July 1.

Jeffery Berns, the Blockchain LLC CEO, said he bought Kirkwood Bank of Nevada in an effort to secure financial inclusion for blockchains, along with other blockchain based businesses:

“Purchasing the bank was basically security for me to make sure that Blockchains and myself had access to the financial system... But secondarily, it’s to create an environment where the blockchain ecosystem, the legitimate businesses out there who are trying to build projects that are going to empower the individual and better the world, that they have a bank that understands what they’re doing and isn’t fearful.”

The bank was acquired through a holding company unaffiliated with Blockchains, Berns explains:

“Only bank holding companies can own a bank, and if Blockchains owned the bank it would have to do reporting much like a bank holding company would. And my plans for Blockchains are to give a portion of the company away. I intend to turn over all the power to the users of the system. I don’t think the regulators would have ever been comfortable with that.”

The sale reportedly was in the process of negotiations in 2017, with the acquisition agreement being signed in August 2018. The purchase of $28 million includes $3 million added to the $25 million purchase price, for capital for investment purposes.

Berns views this partnership between Kirkwood Bank of Nevada and Blockchains LLC as providing a regulatory sandbox to test possible future blockchain solutions, as outlined by Berns himself:

“I needed a playground [...] I needed a place to do a proof of concept with regulators to show that loans can be done in such a way that if I have $1,000, I could invest 10 cents in 10,000 loans and, it would all be done on the blockchain and micro payments would be made, and there’s no funny business.”

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