Binance is backing plans to create a new bank whose owners will be cryptocurrency investors, Bloomberg reports on Thursday.
The crypto exchange has taken a 5 percent stake at a $155 million pre-money valuation alongside other investors in the future Founders Bank. The bank will operate from the island of Malta, where Binance recently moved to. According to Bloomberg, the bank needs to obtain a license from regulators in Malta, member of the European Union.
Malta is very happy with the plans of opening a bank owned by cryptocurrency investors. Junior Minister for Financial Services, Digital Economy and Innovation Silvio Schembri said in a statement: "We are honored to be chosen as the location of the first global community-owned bank."
The Founders Bank aims to be the first decentralized and community-owned bank in the world. The investment of Binance is, according to an emailed comment of the second largest exchange in the world to Bloomberg, 'the first step toward an offering that Founders Bank will conduct through the blockchain-based equity fundraising platform Neufund'. The Founders Bank aims to issue 'its own legally-binding equity tokens.'
According to reports, all market participants will be equal co-owners of Founders Bank, which allows investors and customers to decide on what direction the bank is heading to and what the strategy will be. Smart contracts will be used for governing.
In the meantime, Binance is working hard to offer fiat-to-crypto trading later this year. It already launched an exchange in Uganda where fiat can be traded against cryptocurrencies. The exchange aims to offer euro-to-crypto-trading soon after it opened a bank account on Malta.