A decentralised, regulated bank is being set up in Malta. The Founders Bank, which is being backed by Binance, will be funded through the issue of legally binding equity tokens, in what it describes as an ETO, or Equity Token Offering.
The fundraising will be run by Neufund, a Berlin-based private equity fundraising platform, which is also a partner in the project.
Founders Bank is applying for a banking licence from Malta’s regulator, which would require approval from the European Central Bank. If this is granted it would give the project much needed credibility amongst the institutional investment community.
The bank is being positioned as the world’s first decentralised, community-owned bank. The project represents the latest attempt to create a bridge between traditional finance and the world of cryptocurrencies, blockchains and decentralised organisations.
In June, the Maltese Parliament passed a string of crypto friendly laws to position the Mediterranean island as the go-to hub for blockchain based companies.
So far, the strategy seems to be working. Crypto exchanges Binance, BitBay and OKEx have all moved their headquarters to Malta, and earlier this week another Malta-based company, Palladium, announced it was issuing the world’s first convertible coin.