Binance Is Backing a "Decentralized Bank" Based In Malta

Binance Is Backing a "Decentralized Bank" Based In Malta
Malta’s efforts to become known as the »blockchain island« continue, and the country is slated to become the home of the world’s first blockchain and cryptocurrency-friendly bank. The project, called Founders Bank, will be issuing equity tokens through a blockchain-based platform called Neufund. As the name suggests, the bank will be owned by its founders, those who are going to purchase the equity tokens.

According to an official blog post, Founders Bank is currently waiting to receive a banking license in Malta, and the service is planned to go live in the first half of 2019. Given Malta’s attitude towards the blockchain and crypto space, Founders Bank shouldn’t have too many problems acquiring a license in Malta, but the project could potentially run into a roadblock in the form of the European Central Bank. Binance, one of the biggest cryptocurrency exchanges in the world, is one of the biggest investors in the project. The exchange has big plans in Malta – it has established an office in the country, with plans for launching a fiat/crypto exchange.

Due to regulatory uncertainty, banking services can be hard to come by for companies in this space, which is the main issue Founders Bank is attempting to solve. Apparently, the bank’s decision-making process will be based on smart contracts in order to achieve decentralized governance.

Binance CEO Changpeng Zhao shared his thoughts about the project on Twitter:

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