Litecoin scoops up 10% of German bank as part of strategic partnership with TokenPay
The Litecoin Foundation, the team behind the Litecoin (LTC) cryptocurrency, is taking on a 9.9% stake of Germany’s WEG Bank in exchange for participating in a strategic partnership with Swiss blockchain development company behind the “World’s most secure coin”.
TokenPay Swiss AG has handed over a 9.9% it stake it owned in Germany’s WEG Bank to the Litecoin Foundation as part of a strategic partnership between it and the LTC team to develop services around its TPAY cryptocurrency and other FinTech services.
The partnership will, the two entities hope, produce a “leading force in creating and delivering to the market modern consumer-driven crypto FinTech solutions.”
TokenPay recently announced the deal to buy the WEG stake, and also that it had an option to eventually buy up to 90% of the bank pending regulatory approval. As German law forbids a company from owning more that 9.9% of a bank without a nod from regulators, Litecoin will now take on that first share – thus allowing TokenPay to pick up another 9.9% until it gets it. If and when any such approval is gains, TokenPay has the stated intention of exercising its right to buy those remaining shares.
For its part, Litecoin Foundation is being tasked to provide “a broad and comprehensive marketing and technology service” to TokenPay and its related cryptocurrency and business operations. Specifically, TokenPay expects to “benefit from Litecoin’s high-level blockchain mechanisation capabilities,” with work focusing on the TPAY cryptocurrency, eFin decentralised exchange (DEX), EFIN coin, TokenSuisse asset management’s financial products, the systems of WEG Bank itself, and TokenPay’ Multisignature Transaction Engine which is designed to provide fast, secure crypto e-commerce payment facilities.
Building upon a long-standing partnership TokenPay has had with the Verge cryptocurrency, TokenPay expects the Litecoin and WEG deals to bring several hundred thousand customers to its debit card platform in the near term. This means that Litecoin will be leveraged to not only deal with scaling issues, but also to establish “comprehensive automation guidelines and standards” for the banks as it moves into new FinTech areas. by the bank as it explores new market opportunities.
With all of its Q1/2 goals for 2018 now ticked off, Q3/4 also looks busy for TokenPay. It should it working towards getting the eFin decentralised exchange platforms ready for desktop and mobile, fully launching its Merchant and Escrow services; publishing TPAY Apple iOS and Samsung Mobile wallets, as well as launching the TokenCity merch platform, the TokenGig job-finder service, TokenGaming white label online Casino platform and CryptoBet online gambling hub. All whilst getting that regulatory approval and upgrading WEG’s bank-end systems.
Charlie Lee, Managing Director of the Litecoin Foundation, said, “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 decentralised exchange.”
Matthias von Hauff, founder, and CEO of WEG Bank AG added: “The partnership with innovative institutions such as TokenPay and Litecoin might at first come unexpectedly for a very conservative institution like us. But we have thoroughly and diligently examined the prospects of a common future, and we became convinced that the future of banking will make adoption of such modern payment methods inevitable.”
Prof. Dr. Jorg E. Wilhelm, Head of Supervisory Board of TokenPay Swiss AG commented, “We are elated to be in the process of acquiring a large stake in a successful business bank based in Germany such as WEG. Our ecosystem consisting of the TPAY blockchain, WEG Bank, TokenSuisse and Litecoin Foundation provides us with a tremendous opportunity regarding merchant solutions, along with a strong and diverse customer base for our crypto debit card business. The tangible reality of bridging the gap between the old and new world is electrifying.”