Litecoin Foundation and TokenPay joined hands to acquire a stake in WEG bank. In May 2018 TokenPay had acquired 9.9% of the bank along with options to purchase approximately 90% overall of the bank pending the customary regulatory approval.
Litecoin and TokenPay: A win-win partnership
WEG Bank was founded in 2015 and is the second bank to be started by CEO Matthias von Hauff. It is a booming, market-leading German institution known throughout the industry as a market leader in the real estate renovation and modernization projects market.
WEG Bank had plans to create a new division, which will not disrupt the current one, that will enable consumers and merchants to integrate FinTech and blockchain technology and services. This is the reason Tokenpay found it interesting to acquire WEG Bank.
In accordance to partnership Litecoin Foundation also acquired a 9.9% of Germany’s WEG Bank and in exchange Litecoin agrees to provide a broad and comprehensive marketing and technology service agreement to benefit TokenPay and its related cryptocurrency and business operations. As a result of this partnership, TokenPay and Litecoin combine as a leading force in creating and delivering to the market modern consumer-driven crypto FinTech solutions.
TokenPay, which already has several blockchain initiatives under its name which includes TPAY Cryptocurrency, eFin Decentralized Exchange (DEX), TokenSuisse Asset Management, WEG Bank FinTech Platform and Multisignature Transaction Engine, will now directly benefit from Litecoin’s high-level blockchain mechanization capabilities.
The partnership will focus on several key areas that have been identified by analysts as critical to the success of the enterprise.
Furthermore, at the same time, TokenPay has acquired an additional 9.9% of WEG Bank. It is essential to understand that under German banking law no entity can own more than 9.9% of a bank without regulatory approval. Upon the granting of the approval, TokenPay plans to exercise its options to acquire the remaining shares of WEG Bank it is entitled to purchase.
The probable outcome of the partnerships and acquisition
With the significant addition of Litecoin as a strategic marketing, blockchain technology, and logistics partner in WEG Bank and its long-term partnership with Verge Currency, TokenPay predictably projects adding several hundred thousand customers to its debit card solutions platform in the near term.
Accordingly, the technical expertise provided by Litecoin will be a great advantage to the corporation of comprehensive automation guidelines and standards employed by the bank as it explores new market opportunities.
Top executives of all three parties share the excitement
As reported in the official press release Charlie Lee, Managing Director of the Litecoin Foundation, Matthias von Hauff, founder, and CEO of WEG Bank AG and Prof. Dr. Jorg E. Wilhelm, Head of Supervisory Board of TokenPay Swiss AG shared their views and said that they were excited to work together for a collaborative betterment.
I’m excited to announce that @LTCFoundation and @TokenPay have entered into a strategic partnership to buy a stake in a German bank, WEG Bank AG. We plan to work on many exciting consumer-driven crypto solutions. Stay tuned! 🚀
— Charlie Lee [LTC⚡] (@SatoshiLite) July 10, 2018
Charlie Lee, Managing Director of the Litecoin Foundation, stated,
“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 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. We are therefore proud to have teamed up with the best in the field.”
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.”
This is definitely a forward-looking partnership and a really strong attempt to bring the use of cryptocurrencies and blockchain to the mainstream. This partnership does give us an insight into how the future of Fintech and Blockchain together looks like with financial institutions.
Will this Tri-Party partnership be successful and lead by example for others to follow? Do let us know your views on the same.
Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.