The Litecoin Foundation, which manages the widely popular peer-to-peer cryptocurrency of the same name, and TokenPay, a multi-utility blockchain platform that is supported by a project-owned banking infrastructure, announced today that they have formed a strategic partnership to transfer a 9.9% stake in WEGBank AG, a bank located in Ottobrunn, Germany, to Litecoin.
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
According to the announcement, TokenPay had previously acquired 9.9% of the bank in addition to options to purchase a 90% overall stake in the bank following regulatory approval. Today, TokenPay has revealed that the Litecoin Foundation will be joining in the acquisition in return for providing a “broad and comprehensive marketing and technology service agreement to benefit TokenPay and its related cryptocurrency and business operations.”
Litecoin creator and notable industry influencer, Charlie Lee, shared his excitement in a statement accompanying the announcement.
This partnership is a huge win-win for both Litecoin and TokenPay. I’m looking forward to integrating Litecoin with the WEG Bank AG and all the various services it has to offer, to make it simple for anyone to buy and use Litecoin. I’m also excited about Litecoin’s support in TokenPay’s eFin decentralized exchange.
The relationship between TokenPay and Litecoin began with a simple Twitter conversation between TokenPay founder, Derek Capo, and Lee. It was reported that on April 22, 2018, TokenPay initiated an NDA with Litecoin, and leading many to speculate that there could be a potential partnership to co-invest in TokenPay’s banking infrastructure.
With the latest announcement, TokenPay shares that it has acquired an additional 9.9% stake in WEGBank, and notes that no entity can own more than 9.9% of a bank without regulatory approval according to German banking laws.
TokenPay fully plans to exercise its options to acquire the entire 90% stake upon regulatory approval.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.