Litecoin Foundation, the non-profit organisation behind Litecoin, has made an agreement with crypto-to-fiat payments firm TokenPay to acquire a 10% stake in German bank WEG.
According to the press release, TokenPay passed 9.9% of its equity in WEG bank in return for the Litecoin Foundation’s technical assistance with progressing the bank’s plans to bring cryptocurrency payment solutions to customers and for working with TokenPay on its various blockchain projects.
Charlie Lee, Litecoin’s creator said: “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.”
TokenPay acquired the stake in WEG in May this year, but at the time also disclosed that it had managed to buy an additional 9.9%. The funds for the purchase came to TokenPay via its token sale in December 2017. It has also emerged that TokenPay plans to “exercise its option to buy the remaining shares of the bank if approved by German regulators.”
TokenPay launched in 2015 and built its own blockchain protocol and native TPAY token in an effort to facilitate scalable crypto-to-fiat transactions. Interestingly, WEG bank specialises in providing financial services to real estate customers and Matthias von Hauff, the bank’s founder and CEO said, “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.” Which just goes to show you that ‘conservative’ institutions can change their thinking about cryptocurrency and its place in banking.