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.
SEC Moves to Make Decision on VanEck-SolidX Bitcoin ETF Proposal
The U.S. Securities and Exchange Commission (SEC) announced Thursday that it has begun proceedings to decide whether to approve a proposed bitcoin exchange-traded fund (ETF).
The SEC published an "
Enigma Delays Release of 'Discovery' Protocol on Ethereum Mainnet
Engima, the startup seeking to bring privacy to the world of public blockchains, is delaying the launch of its mainnet as part of a wider reworking of its developmental roadmap.
The company had pre
Just a Cycle? Big Bitcoin Miners Stay Positive in Face of Market Slump
Despite the downturn in the crypto markets so far in 2018, executives from several bitcoin mining firms have said this scenario has been seen before and they are not deterred by current low prices.
Quick Brew? BitFury's Coffee Machine Accepts Bitcoin Via Lightning Network
Blockchain firm Bitfury has come up with a novel product aimed to make it easier to pay for products with bitcoin.
To that end, a specialized engineering team within the company has developed a cof
Coinbase Disputes Claims in New York Attorney General's Exchange Report
A recent report published by the New York Office of the Attorney General (OAG), which claimed several cryptocurrency exchanges it investigated are vulnerable to market manipulation, has drawn backlash
Bitfury Reveals New Generation of Bitcoin ASIC Chips
Bitfury Group has developed a new, more efficient bitcoin mining chip, the firm announced Wednesday.
The Bitfury Clarke application-specific integrated circuit (ASIC) chip "offers the strongest per
US Lawmakers 'Strongly Urge' IRS to Update Crypto Tax Guidance
A group of U.S. lawmakers has called on the nation's Internal Revenue Service (IRS) to release comprehensive guidance for taxpayers earning gains on cryptocurrency investments or transactions.
Brazil Moves to Probe Banks After Crypto Exchanges Denied Services
Brazil's antitrust watchdog is investigating whether the major banks in the country worked together to close off access to cryptocurrency services.
The Administrative Council for Economic Defense (