Binance is backing plans to create the world’s first decentralized, community-owned bank in Malta, with tokenized ownership.
According to Bloomberg, Binance has already invested in a 5 percent stake, along with other anchor investors, at a $155 million pre-money valuation.
The project seeks to become the world’s first decentralized, community-owned bank. The owners of the future bank will be issued with “legally-binding equity tokens” in return for their investment, via the blockchain-based equity fundraising platform Neufund.
As Bloomberg notes, before launching operations, the bank will need to seek a license from Maltese regulators, in accordance with EU financial laws.
Silvio Schembri, a junior minister within the Office of the Prime Minister of Malta, has reportedly said that the island “is honored to be chosen as the location of the first global community-owned bank.”
As Cointelegraph reported last month, the Maltese parliament has just recently approved three distributed ledger technology (DLT) and crypto-related bills, consolidating the island’s bid to remain at the forefront of blockchain innovation.
Ahead of today’s revelations, Binance has recently made its first foray into crypto-fiat trading, unveiling a new platform, Binance Uganda, which supports the Ugandan Shilling, alongside major cryptocurrencies.
According to CoinMarketCap, as the second largest exchange globally, Binance has seen $923.3 million in trades over the past 24 hours to press time.