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There are some big tectonic shifts underneath the crypto-fiat borderline. The Litecoin Foundation now holds 9.9% stake in Germany’s WEG Bank AG after a strategic partnership with the decentralized payment platform TokenPay.
The deal has first begun back in May, when TokenPay announced that it has acquired 9.9% of the shares of WEG Bank; the firm has also stated that it has plans to purchase an additional 80.1% upon customary regulatory approval of the German authorities (no entity can purchase over 10% of a bank without such approval under German laws).
This week the deal proceeded with a somewhat surprising twist: TokenPay has transferred its nearly 10% stake in WEG Bank to the Litecoin Foundation in exchange for “a broad and comprehensive marketing and technology service agreement to benefit TokenPay and its related cryptocurrency and business operations.” After transferring the 9.9% ownership to the Litecoin Foundation, TokenPay acquired an additional 9.9% stake in WEG Bank and reaffirmed its plans to acquire the remaining shares of the bank upon regulatory approval.
TokenPay specifically mentions the TPAY cryptocurrency and its vital blockchain, eFin decentralized exchange (DEX) and the EFIN coin, TokenSuisse asset management as some of the benefits of the partnership with the Litecoin Foundation, and also the addition of several hundred thousand customers to its debit card solutions platform as part of the deal with WEG Bank.
Charlie Lee, the creator of Litecoin and Managing Director of the Litecoin Foundation, expressed his enthusiasm about the entire deal on Twitter:
I'm excited to announce that @LTCFoundation and @TokenPay have entered into a strategic partnership to buy a stake in a German bank, WEG Bank AG. We plan to work on many exciting consumer-driven crypto solutions. Stay tuned! 🚀
— Charlie Lee [LTC⚡] (@SatoshiLite) July 10, 2018
This trio-deal has many more weighty meanings than just the regular significance of humdrum partnerships and acquisitions that take place all the time in the business world – it actually connects and binds the traditional conventional sphere of finance (banking) with the new digital financial age (crypto). There were obviously previous public deals and all sorts of under-the-table arrangements between the two domains, but this deal takes it to a complete different level of fusion.
Will the deal ultimately prove to be fruitful? Will it signify the beginning of more major fiat-crypto partnership? How will it change the financial world, if at all? These are the fascinating questions that only the future can answer.