Binance-backed decentralised Founders Bank to offer equity through Neufund
Binance will be both a customer and part-owner of the world's first decentralised bank.
Malta has been refocusing itself around cryptocurrency banking, attracting companies like Binance with the promise of a sunny regulatory climate and options for accepting fiat currency on their platforms from around the world.
Binance has reportedly picked up a 5% stake in the project, along with other anchor investors, and it has received a US$155 million pre-money valuation. It will also be doing a public equity offering through the Neufund platform, which lets companies tokenise equity to sell to the public in a legally compliant fashion.
For a system like Founders Bank, this might be an effective way to make sure equity is as accessible and legally satisfactory as possible.
The bank's immediate future might also look promising. Binance didn't just invest in Founders Bank, but intends to use its services once it goes live.
"We are not only excited to be one of the first investors of this inclusive community for this pioneering initiative, but also look forward to explore the full range of its banking services," said Binance CEO Changpeng Zhao. "We continue to be delighted by the vibrant blockchain opportunities in Malta, and look forward to launching more partnerships in the region."
"We're proud to announce our progressive banking solutions tailored for the needs of decentralised companies, with already existing support from the leaders of the blockchain industry, including Binance and Neufund," said Michael Bianchi, chairman and co-founder of Founders Bank. "I am excited about the upcoming equity token offering when everyone will be able to become the co-owner of the company and shape the future of banking with us!"
According to the Founders Bank website at the time of writing, it does not currently offer any products or services as it's waiting to receive a banking licence. But given Malta's active interest in re-positioning itself as "hashtag BlockchainIsland," it is reasonable to assume that it won't be an obstacle.
According to a blog post, those who buy into Founders Bank through Neufund will be considered co-founders (put that on your resumé), and will get a chance to have a say in the direction of the bank as it develops in the future. The sale is expected to be sometime at the start of 2019.
Disclosure: At the time of writing the author holds ETH, IOTA, ICX, VET, XLM, BTC, XRB
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