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The blockchain company is reportedly going to acquire the remaining shares in WEG Bank after getting approval from regulatory bodies in Germany.
The Litecoin Foundation has purchased a 9.9% stake in Germany’s WEG Bank as part of the partnership with TokenPay, a cryptocurrency payments company based in Switzerland. Two months ago, TokenPay bought 9.9% of the bank together with the option to acquire around 90% of the stake, pending regulatory approval. The company has now transferred this stake to Litecoin Foundation, which will in exchange help TokenPay to promote its services leveraging the foundation’s expertise.
Under the agreement, the Litecoin Foundation will offer its blockchain mechanization capabilities to help TokenPay implement its blockchain projects. They include the TPAY cryptocurrency and its underlying blockchain technology, TokenSuisse asset management, eFin decentralized exchange (DEX) and its EFIN token, a TokenPay Multisignature Transaction Engine for e-commerce payments, and its WEG Bank FinTech platform.
“This partnership is a huge win-win for both Litecoin and TokenPay,” said Litecoin Foundation’s managing director, Charlie Lee, in an official statement. “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 collaboration will enable TokenPay to get access to Litecoin’s base of customers, who will be able to trade TRAY tokens and use the company’s debit card services. The foundation, meantime, will use TokenPay’s connections with banks to work with legitimate financial organizations. TokenPay is reportedly planning to purchase the remaining shares of the bank, upon getting approval from German regulators.
“We are elated to be in the process of acquiring a large stake in a successful business bank based in Germany such as WEG,” said Dr. Jorg E. Wilhelm, head of the supervisory board of TokenPay Swiss AG.
“Our ecosystem consisting of the TPAY blockchain, WEG Bank, TokenSuisse and Litecoin Foundation provides us with a tremendous opportunity regarding merchant solutions, along with a strong and diverse customer base for our crypto debit card business. The tangible reality of bridging the gap between the old and new world is electrifying.”
Matthias von Hauff, the CEO of WEG bank, noted that although the deal may seem unexpected for such a “conservative institution”, they “have thoroughly and diligently examined the prospects of a common future” and are convinced that the use of such innovative payment options will become inevitable in the future.
LTC is now the sixth largest digital currency with a market cap of over $4.45 billion. At the time of writing, the price is standing at $77, 74, according to CoinMarketCap.