Germany’s WEG AG Bank Has 30% Stakes Owned By Crypto Firms Nimiq, TokenPay and LTC Foundation
While the world is anticipating traditional banks to take over crypto companies, things are happening in vice-versa. It looks like crypto companies might be taking over traditional financial institutes. To exemplify this, now, almost 30% of the equity of WEG Bank, a small bank in Germany, is owned by crypto-based businesses.
WEG Bank AG was established in 2015 by founder and CEO Matthias von Hauff. It is a market-leading institution in German real estate banking for HOA loans and is set to expand its business operations into the retail, corporate account, and cryptocurrency sectors.
In November 2018 TokenPay announced a partnership with WEG Bank. Share certificates representing 9.9% of the equity interest in WEG Bank AG have been transferred to TokenPay Swiss AG, along with options to acquire an additional 80.1% of the bank upon customary regulatory approval. The proceeds of this transaction were derived from their December 2017 token sale.
Following this, TokenPay and Litecoin agreed on Joint ownership of WEG AG Bank. This means that Litecoin and The Litecoin Foundation will be direct partners with TokenSuisse and will be aiding our efforts to ensure the infrastructure and development that is slated to support the bank and its features will operate on the latest and greatest innovations in the space.
A couple of weeks ago, we had reported a story of Lisk joining TokenPay and Litecoin Foundation in partnership with WEG bank. Now Nimiq joins the group with another 9.9% stake in the company.
As a result of this partnership and acquisition, Nimiq will continue dedicating their profound technical expertise to execute the project's blueprint for Nimiq OASIS, an innovative crypto-to-fiat bridge. This consumer-driven fin-tech solution is focused on delivering a fast and easy way to buy or sell cryptocurrency for fiat currency.
Elion Chin, co-founder of Nimiq stated:
“With Litecoin and Tokenpay as existing shareholders, new clients including Lisk, and other key prospective partnerships, we believe WEG Bank is on the way to reinventing itself as a bank of the future. It's existing stable real estate banking business gives it the stability it needs, while thoughtful expansion into the crypto space sets the stage for modern growth and innovation.”