Earlier this week, the Litecoin Foundation in a partnership with the crypto-fiat payments firm TokenPay acquired a 9.9% stake in Germany’s WEG Bank AG. The move was brought about by the bank’s need to create and deliver a modern crypto FinTech solution.
Charlie Lee on the Partnership and Acquisition
As a response to the recent development, Charlie Lee 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.”
Charlie also shared his thoughts live today at #cryptocraze and a full video could be found on cheddar’s twitter:
https://twitter.com/cheddar/status/1017447969531092992
A Bit of Background Regarding TokenPay
TokenPay Swiss AG is a blockchain development company that incorporates Bitcoin’s cryptographic technology with its own advanced security and privacy features. According to TokenPay, “TPAY” is the world’s most secure coin and employs advanced proof-of-stake algorithms, Tor IP blocking and is the main driver for its TokenPay Multisignature Transaction Engine merchant processing platform.
Official Announcement
While the original stake into WEG Bank is 9.9%, TokenPay will be acquiring more shares over time according to their official announcement.
Why 9.9%?
Readers might be questioning this very odd percentage of 9.9%, but German banking law only allows up to 9.9% stake in a bank before regulatory approval is required. This would allow Litecoin and TokenPay to each own a 9.9% without any regulatory issues.
Our Thoughts
This seems like a positive move for Litecoin moving forward as it links a physical banking entity to Litecoin’s image. However, we should note that this is in no way a rise in price for Litecoin.
Litecoin is currently hovering around $76 and more developments regarding the partnership would need to occur before seeing a price rise.