Cryptocurrency

Crypto Companies are Spreading Beyond the Crypto Space

As per the reliable report, a few companies in the cryptocurrency space own over 30 percent of shares in one small Germany based bank which now deals in real estate too. The name of the bak is WEG Bank AG.

The companies who hold share in the bank are; Nimiq which holds 9.9 percent of the bank;  TokenPay;  the Litecoin Foundation.  This all purchasing of shares has been done with official permission as, as per the German law foreign ownership of 10 percent or more demands additional regulatory permission. This is one more example indicating that the companies in the crypto space are growing with good speed and at the same time they do not want to stay limited to their space.

Among the three crypto companies holding the shares in the bank, TokenPay was the first to purchase the bank’s equity (last year) after which the Litecoin Foundation director joined the bank’s board. Then WEG Bank has decided to enter in partnership with Nimiq in order to develop a better system for crypto-to-fiat conversions for its clients. In 2017 Nimiq conducted a token sale in which it raised around $12.8 million; it has invested the amount raised in other assets too like real estate and equity.

On the recent news of purchasing equity in banks and the path Nimiq has taken, its co-founder Elion Chin said,

“With Litecoin and Tokenpay as existing shareholders, new clients including [blockchain application platform] Lisk, and other key prospective partnerships, we believe WEG Bank is on the way to reinventing itself as a bank of the future.”

Crypto space companies are building relations with traditional banking facilities to give more liquidity to the crypto market in the long run. Plus, it would boost the trust and adoption of the cryptocurrencies too. This partnership would help crypto exchanges only if they pass the WEG Bank’s selection process.

Now a day, a few decentralized exchanges can connect to traditional bank accounts for professional purposes. Which means, to make smooth DEX to WEG Bank AG transactions possible, the Nimiq system will be launched by 2020. Here, WEG Bank AG will stick to its traditional banking structure only and will not have to deal with crypto directly.

“For the past 12 months, we have been looking at various ways to expand our core banking activities into the blockchain community,” WEG Bank AG CEO said.

Nimiq is also reportedly starting its partnership with Trust Wallet (which is owned by Binance).

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David Cox

David is a finance graduate and crypto enthusiast. He projects his expertise in subjects like crypto and Blockchain while writing for CryptoNewsZ. Being from Finance background, he efficiently writes Price Analysis. Apart from writing, he actively nurtures hobbies like sports and movies.
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