Malta has claimed a ‘World’s first’ with its decentralised bank, which is appropriately named Founders Bank. This move overcomes the problems that fintech and other blockchian-based firms have encountered in getting access to bank accounts on crypto-friendly Malta.
Founders Bank will be offering what it terms as progressive fintech solutions to the world of innovation and blockchain.” The bank is a collaboration between the world’s largest cryptocurrency exchange by turnover, Binance and the blockchain-based equity fundraising platform Neufund.
The new bank claims that it will become the first stable, high-tech banking solution that is not just focused on providing startups and their founders with banking, but will also bridge the gap between the traditional financial world and innovative crypto companies.
Silvio Schembri, Junior Minister for Digital Innovation and Financial Services told CCN: “This is another block to our ever growing blockchain island ecosystem. Next week we will announce other complimentary projects that will continue to close the circuit for the system to function. The culmination of which will be exhibited during the Government backed DELTA Summit to be held between the 3–5 October in Malta.” He is also, like many others on Malta, excited about what this big step means for the island. The Prime Minister Joseph Muscat has also been tweeting his best wishes for Founders Bank.
A community-based bank
Founders Bank will make a token equity offering on Neufund, which is covered by German regulations, and in collaboration with one of Europe’s major stock exchanges in the coming months and this will allow all market participants to become co-owners of Founders Bank. Indeed, this is the really ‘pioneering’ element of the project, because it is going to allow clients to decide on the development of the solutions they are using with a blockchain-style governance model based on smart contracts.
Changpeng Zhao, Founder and CEO of Binance told the media that Founders Bank would be the first decentralised and community-owned bank in the world, saying: “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 exploring 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.”
It looks like Malta has taken yet another giant step towards truly achieving its hashtag of #Blockchainisland.