The Litecoin Foundation and the crypto-fiat payment company TokenPay have joined hands and managed to acquire approximately a 10% stake in WEG Bank. Litecoin founder Charlie Lee stated via Twitter that they plan to work on many exciting consumer driven crypto solutions.
The deal also provides an option of buying almost a 90% stake in the bank. However, this is subject to regulatory approval. The German law regarding banking prohibits any entity to acquire more than 9.9% of a given bank without the regulatory approval. TokenPay intends to buy the remaining shares of the German bank once it is granted approval.
TokenPay trades its stake
It is reported that the crypto firm TokenPay traded its 9.9% shareholding in the German institution to the Litecoin Foundation. In return, the latter will offer its blockchain, marketing, and distribution know-how. This will, in turn, be a big plus to the business management of TokenPay.
Litecoin will provide its high-tech blockchain engineering to enable TokenPay to run its main crypto as well as its blockchain projects. It will entail the creation of a TPAY digital currency and its blockchain system together with an eFin crypto exchange (DEX) as well as an EFIN coin.
The deal will also see Litecoin benefit from the Fintech system that is currently operated by WEG Bank. Additionally, the Foundation’s expertise will offer guidance to Tokensuisse Asset Management. Litecoin will also operate the Multisignature Transaction Engine that was created for quick processing and safe e-commerce payments for traders.
Founder and CEO of WEG Bank, Matthias von Hauff said that the partnership with innovative institutions such as TokenPay and Litecoin might at first come unexpectedly for a very conservative institution like theirs. But he revealed they have thoroughly and diligently examined the prospects of a common future. He stated that they were convinced that the future of banking will make adoption of such modern payment methods inevitable. He expressed the bank’s pride to have teamed up with the best in the industry.
Lee feels that the partnership offers a win-win situation for his firm as well as for TokenPay. He was eager for the integration of Litecoin with the WEG bank’s services. He was optimistic it will simplify the process of purchasing and using Litecoin.