Charlie Lee, the founder of Litecoin, recently took to Twitter to announce a partnership with TokenPay, that will see the two collaborate with a German bank.
TokenPay Buys a Stake in German Bank
TokenPay, a Switzerland-based cryptocurrency payment platform, recently announced that it would be securing a deal with the privately owned WEG Bank in Germany. The bank agreed to sell 9.9% of its equity immediately and gave an option for TokenPay to acquire up to 90% of the bank after the two entities receive approval from regulators.
The press release given by TokenPay noted how German banking laws restrict single entities from owning over 9.9% in a bank without regulatory approval. But upon approval, TokenPay intends to buy as much of WEG Bank as it is “entitled to purchase.”
But with today’s announcement, it has become apparent that the platform also intends to extend an olive branch to other organizations, namely the non-profit Litecoin Foundation, led by Litecoin founder Charlie Lee.
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
TokenPay has just transferred its recently acquired shares in WEG Bank to Lee’s foundation in exchange for marketing and blockchain technology services, which will be a great help in TokenPay’s rapidly expanding ecosystem.
The cryptocurrency payments platform wrote:
“Today, this 9.9% stake in WEG Bank was further transacted to the benefit of Litecoin Foundation in exchange for a broad and comprehensive marketing and technology service agreement to benefit TokenPay and its related cryptocurrency and business operations.”
The release went on to mention that the collaboration will allow for the two organizations to help deliver “market modern consumer-driven crypto FinTech solutions.”
TokenPay is in the midst of conducting a series of expansion efforts, that include developing the firm’s in-house cryptocurrency (TPAY) and upcoming decentralized exchange, opening an asset management firm and the most recent WEG Bank collaboration.
Additionally, the platform has hinted at utilizing the WEG Bank partnership to create a cryptocurrency debit card, allowing users to spend their cryptocurrencies in day-to-day transactions.
The Swiss-based cryptocurrency platform hopes that the Litecoin Foundation’s extensive “blockchain mechanization capabilities” will be of great help towards the aforementioned expansion efforts.
Lee noted how this is not a one-sided deal, but a symbiotic relationship, stating:
“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.”
Litecoin + TokenPay Partnership: Nearly Three Months in the Making
The flame that started this partnership was sparked approximately three months ago when the Litecoin founder called out the Verge/Pornhub partnership, backed by TokenPay. Derek Capo, CEO of TokenPay, defended the partnership, by poking a bit of fun at Coinbase’s listing of Litecoin.
After some casual banter, Capo mentioned that TokenPay had just made its first move to acquire WEG Bank, and asked Lee if he was interested in working together. Capo wrote:
“No problem, so when do you want to talk about a REAL debit card solution? We are buying 9.9% of a bank in Munich with option to buy 90%. We have a whole ecosystem and plan in place. Let me know how we can work together. The battle between old and new world is just getting started.”
Seeming interested, Lee questioned Capo further about his ideas for a partnership, ending it off by asking the Tokenpay CEO to move the conversation to a more private setting.
Thanks. Let me know if there’s anything I or the Litecoin Foundation can do to help. Dm me.
— Charlie Lee [LTC⚡] (@SatoshiLite) April 17, 2018
This most recent announcement shows that the discussion between the two organizations has come to a close, resulting in an ambitious, yet promising partnership that will be of aid to both parties.
Featured image from Shutterstock.