Crypto Venture Acquires 10% Stake In "Very Conservative" German Bank

Authored by Marie Huillet via CoinTelegraph.com,

The Litecoin (LTC) Foundation has acquired a 9.9 percent stake in Germany’s WEG Bank AG. The deal is a result of a new strategic partnership with crypto-fiat payments firm TokenPay. The news comes from an official announcement published by TokenPay Tuesday, July 10.

image courtesy of CoinTelegraph

TokenPay has now transacted its 9.9 percent equity share of the bank to the Litecoin Foundation in exchange for an agreement that will see the Foundation providing its blockchain, marketing and logistics expertise to the benefit of TokenPay’s cryptocurrency and business operations.

Specifically, the deal will see the Foundation offering its “high-level” blockchain mechanization capabilities to assist TokenPay in realizing its major crypto and blockchain initiatives. These include the development of a TPAY cryptocurrency and its underlying blockchain and an eFin decentralized exchange (DEX) with a native EFIN token.

The Foundation will also provide input for TokenPay’s TokenSuisse asset management, its WEG Bank FinTech platform, and a TokenPay Multisignature Transaction Engine, designed for processing fast and secure crypto e-commerce payments for merchants.

TokenPay also has a long-standing partnership with Verge (XVG) cryptocurrency, with plans to roll out XVG crypto debit cards in the near future.

Litecoin founder Charlie Lee said of the new deal:

“This partnership is a huge win-win for both Litecoin and TokenPay. I’m looking forward to integrating Litecoin with the WEG Bank AG and all the various services it has to offer, to make it simple for anyone to buy and use Litecoin. I’m also excited about Litecoin’s support in TokenPay’s eFin decentralized exchange.”

Matthias von Hauff, founder and CEO of WEG bank, added that although the partnership with Litecoin and Tokenpay may seem unexpected for what he characterized as being “a very conservative institution,” the bank firmly believes “the future of banking will make adoption of such modern payment methods inevitable.”

TokenPay reportedly plans to acquire the remaining shares of WEG, pending approval from German regulators. The head of the firm’s supervisory board said he believes the cooperation between TokenPay, Litecoin and WEG will make bridging the gap between the old and new world “a tangible reality.”

A Cointelegraph in-depth analysis last month reported on the evolving financialization of the crypto ecosystem, which many stalwart crypto adopters regard with some skepticism. As the piece outlined, to date the crypto ecosystem has been driven by retail investors, rather than the venture capitalists and institutional investors who have traditionally led the world trading economy.

Arguably, several major crypto industry companies are now moving towards an ecosystem that resembles the traditional financial sector more closely, as for example, with Coinbase’s recently launched custodian solution for crypto assets, and its pursuit of a federal banking charter.

Litecoin is currently trading at around $80 and is the 6th largest cryptocurrency with $4.5 billion in market capitalization, according to Coinmarketcap.

Comments

Quantify Wed, 07/11/2018 - 18:30 Permalink

A fake currency for a fake bank to promote. Indeed is there anything even as a nation of Germany. Since they apparently have open borders.

WorkingClassMan Cryptopithicus Homme Wed, 07/11/2018 - 19:11 Permalink

Crypto's still in an experimental stage...Bitcoin Cash does its thing, Litecoin does its thing, and Etherium does its thing for example...these cryptos have paid their dues and are established, along with a few others--and the users should (ideally) refrain from bashing other coins and contributing to FUD, which the Central Bank scum, media whores, and monied interests are all too happy to provide themselves.

This is a good venture, it will allow an end-round the banks possibly, to use their own weapons against them hopefully.  This has to be done if nothing more than as a means to expand and gain credibility for the whole crypto space.

In reply to by Cryptopithicus Homme

The_merovingian Cryptopithicus Homme Thu, 07/12/2018 - 06:37 Permalink

Centralization is not an end in itself, it a means to achieve censorship resistance. And on that scale Bitcoin Cash would be about 80% centralized since 80% of all the nodes seem to be hosted in the cloud and controlled by a single entity.

As far as Bitcoin clones go, I would chose Litecoin over Bcash all day long. Lightning support, on-channel swaps for Bitcoin, low fees, faster than Bitcoin, what's not to like.

In reply to by Cryptopithicus Homme

Yellow_Snow Wed, 07/11/2018 - 19:00 Permalink

It's big news because crypto's are trying to get access to traditional bank infrastructure... debt cards, direct funding, and work on improving bank systems using blockchain.

Yen Cross Wed, 07/11/2018 - 19:03 Permalink

  I've been getting spam E-mail from TokenPay, pimps.

  The Rothschilds are just absorbing the last vestiges of freedom with fake printed fiat.

_SILENCER Wed, 07/11/2018 - 20:00 Permalink

LTC accessing the existing system

Transition time begins

Absolutely FREE at $79.00

A couple years from now...we shall see

 

And, the Silver fairy dropped 30 Maple Leaves off at Fort Silencer today.