Litecoin Foundation, the non-profit that supports the popular cryptocurrency, has acquired a near 10 percent stake in a German bank.
The deal comes as the result of an agreement with TokenPay, a crypto-to-fiat payments firm, according to an announcement on Tuesday.
TokenPay has now passed ownership of the 9.9 percent of equity in WEG Bank AG to Litecoin Foundation in exchange for the latter's technical assistance in advancing the bank's plans to bring cryptocurrency payment solutions to customers and working with TokenPay on its various blockchain projects.
Charlie Lee, managing director of the Litecoin Foundation, said in the release:
"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 purchased the 9.9 percent stake in WEG Bank for an undisclosed amount in May, and said in the new release that it has also just acquired an additional 9.9 percent. The firm eventually plans to exercise its option to purchase the remaining shares of the bank if approved by German regulators, it said.
According to an announcement from TokenPay in May, the funds for the acquisition are derived from a token sale conducted in December 2017.
Launched in 2015, TokenPay built its own blockchain protocol and native TPAY token in an effort to facilitate scalable crypto-to-fiat transactions.
WEG Bank specifically focuses on offering financial services to real-estate customers. The bank's founder and chief executive, Matthias von Hauff, said the deal was not initially unexpected for a "very conservative" institution like itself, and only came about after much thought about the future of cryptocurrency.
Von Hauff explained:
"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."
Litecoins image via Shutterstock
The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.
Regulation News Moves Bitcoin Prices, BIS Report Says
A new report from the Bank of International Settlements (BIS) contends that bitcoin markets are swayed by news events related to regulation.
"While cryptocurrencies are often thought to operate out
Walmart Tells Produce Suppliers to Use Blockchain by Next September
Walmart plans to sell leafy greens that are tracked using blockchain technology within the next year.
In a press release published Monday, the world's largest retailer both by revenue and by employ
The US Should Take a 'Leadership' Role on Blockchain, IBM Report Argues
Developers and companies researching blockchain technology are looking to the U.S. government to help spur adoption, a new report by IBM claims.
Written by Thomas Hardjono, director of the MIT Trus
Coinbase Just Partnered With A Token Startup in Bid to Attract Pro Traders
U.S.-based crypto exchange Coinbase has teamed up with the token-based trading protocol startup Caspian in an effort to boost its offerings aimed at pro traders and financial firms.
Under the deal,
Australia's Securities Watchdog Has Halted 5 ICOs Since April
The Australian Securities and Investments Commission (ASIC) said late last week that it has stopped five initial coin offerings (ICOs) from taking place since April.
In a statement, the commission
Momentum Is Building to Block Big Miners from Ethereum's Blockchain
Several ethereum miners and developers have come forward with the goal of stopping specialized mining hardware from effectively operating on the network.
Underway since April, the controversy surro
'500 Transactions a Second': Vitalik Says Zk-Snarks Could Scale Ethereum
A form of cryptography pioneered by zcash might help scale ethereum, founder of the platform Vitalik Buterin said on a research forum Saturday.
Named zk-snarks, Buterin said, by using the tech, eth
Juventus Soccer Club Is Launching a Crypto Token to Give Fans a 'Voice'
One of the most popular soccer clubs in the world is launching a crypto token that it says will boost fan numbers by allowing them to "be heard."
For the effort, Italy's Juventus Football Club, whi