Binance, the world’s biggest cryptocurrency exchange by volume, is one of the leading investors of the upcoming Founders Bank in Malta. The Bank will be completely crypto-friendly and hence it has been drawing a lot of attention of the big investors in the game.
Paula Pandolfino, an investor in Bitcoin (BTC) since 2016 and now the co-founder of the Founders Bank told Coindesk:
“Crypto will take over the world, and we need full banking services, we want to be that pillar of banking for the ecosystem to support how it gets done. If anything, [we’re learning] how to wean off traditional banking and getting crypto to be that platform.”
Joe Eagan, President of Polychain, mentioned that the investment was animated by his own adversities that he faced while dealing with banking partners in 2016. In recent times the number of Banks serving the crypto industry has gone up substantially, but according to Eagan there’s still a lack of service providers that are open to crypto projects. He explained:
“We need to bring in new users beyond the original users of bitcoin. And to do that we need to institutionalize the rails and structures of our space, adding services like institutional custody and banking support.”
According to Pandolfino, the bank has already raised $10 million and is aiming at $30 million more by 2020, the year the bank is scheduled to open. Besides Binance, there are a lot of Big names involved like the hedge fund Polychain Capital and the Czech firm Carduus Asset Management. The bank initially planned to raise funds via equity tokens, but soon dropped the plan to avoid complexities in the licensing process.
In a press release, Binance CEO Changpeng Zhao announced that Binance will be one of the first customers of the Bank once it opens. While the Bank is waiting for their European Union banking license, CFO Pandolfino said this is a time to further look into what are the services that the investors are asking for. She added:
“Having Binance as a seed investor, has allowed us to build everything knowing what the pain points are for complex organizations within the crypto space and how to solve those problems.”
Pandolfino also said that the bank might be exploring legal ways to work with tokens in the future, this is strengthened by the fact that she has been one of the advisors who contributed to Malta’s Virtual Assets legislation.
“Our secret sauce is centered around building a know-your-customer, anti-money-laundering platform which is fintech-focused,” she said, describing Founders Bank.