Soon-to-launch crypto-friendly project by Founders bank already has its first client. And its big: Binance.
According to reports, Changpeng Zhao (CZ) has announced support for the first ever crypto bank. CZ is the founder of world-renowned cryptocurrency exchange Binance.
Zhao stated that Founders Bank aims to revolutionize the crypto network and Binance is very much interested in this vision. The financial institution initially tried to raise capital with equity tokens but was deferred to prevent complications during accreditation procedure.
The cryptocurrency exchange platform and Founders Bank are both based in Malta. The island nation is currently a cryptocurrency safe haven. The bank disclosed it has plans to become the first-ever crypto-friendly bank worldwide.
Co-founder of the bank, Paula Pandolfino disclosed that the project already has $10 million in investments. She added that the company is still trying to raise $30 million and is awaiting the EU banking license to enable its launch before 2020.
She further added that crypto will roll-out the old banking system and will become the pillar of the new banking system.
Investors and Bank Future Chairman
Apart from Binance, the crypto-friendly bank has been able to secure investments from two other crypto firms. They include Polychain capital and Carduus Asset management. Binance, however, holds the highest position among existing investors. Pandolfino also acknowledged having Binance as a seed investor has made things a little less complex.
This support received from crypto firms begs the question of which investor will take the position of bank chairman when the Founders Bank crypto project finally goes live.
Every shareholder will want the pole seat when the crypto-friendly bank launches. A lot of competition will definitely take place.
Currently, according to Pandolfino the EU regulation mandates board members to have over 10 years of experience in traditional finance.
She also mentioned the Bank’s intention to explore more ways to work with tokens in the nearest future.
She said: “Our secret sauce is centered on creating an anti-money-laundering, know-your-client policy which is fintech focused.”
Although the road towards launching a crypto bank is a rocky one, enthusiasts believe the Founders Bank project is one to look out for. The fact that there are still few crypto-friendly bank will give it the necessary space to dominate and this will bring about competition from other banks. Therefore creating a viable crypto network.