Cryptocurrency giants Binance and Neufund to create world’s first crypto bank

Malta continues to steal the headlines where the crypto space is concerned and now it seems that there will be the first crypto bank on the island. The collaboration between Binance and Neufund will see the setting up of Founders Bank which will be focused on providing services to crypto customers who will in turn be the shareholders of the bank through an ICO.

Founders Bank will now be providing what it terms as ‘progressive fintech solutions to the world of innovation and blockchain’. The project is a collaboration between the world’s largest cryptocurrency exchange by turnover, Binance and the blockchain-based equity fundraising platform Neufund.

Founders Bank claims that it will become the first stable and high-tech banking solution not only focused on the founders, but also owned by them, bridging the gap between the traditional financial world and innovative crypto companies.

Silvio Schembri, Junior Minister for Financial Services, Digital Economy and Innovation within the Office of the Prime Minister of Malta commented as follows:

“Yet again Malta proves to be the ultimate destination for innovative companies changing the world for better. We welcome Founders Bank with the utmost excitement and hope that their fintech solutions will attract even more world-class companies to our #BlockchainIsland. We are honoured to be chosen as the location of the first global community-owned bank that cares so deeply about transparency and regulation”,

The equity token offering to be conducted on Neufund under German regulation in collaboration with one of Europe’s major stock exchanges later this year, will allow all market participants to become co-owners of Founders Bank. This is pioneering as it will allow clients to decide on the development of the solutions they are using with blockchain-style governance model based on smart contracts.

In comments to the media, Changpeng Zhao, Founder and CEO of Binance explained that Founders Bank would be the first decentralized and community owned bank in the world.

“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 explore 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.”, he said.

The bank will focus on providing a service to tech and business companies and will supposedly be offering ‘top-notch’ banking solutions – whatever that means. Users will be able to access their bank accounts from mobile and desktop applications and use them with credit cards issued by Founders Bank. The system is similar to Revolut – another online bank offering crypto services. The company is currently awaiting its banking license from the Maltese financial authorities and should launch in early 2019 through an Equity Token Offering that will be made through Neufund’s platform later in 2018.

The supervisory board and management of the company includes experienced entrepreneurs and industry experts with Mr. Michael Bianchi serving as Chairman of the Board and including Dr Abdalla Kablan (a prominent blockchain and crypto advisor for Malta who is on the board of the Malta Stock Exchange), 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.

Malta’s Blockchain ecosystem grew rapidly over the last year, with the biggest crypto companies relocating to the EU member state: Binance, Neufund and BitBay. The DLT/Blockchain bills approved by the Malta’s Parliament on 4th of July created a fertile environment for blockchain companies and cleared the uncertainties surrounding the market for decentralized assets, while also establishing direct communications with blockchain leaders.