Bloomberg reported yesterday, July 12, that the creation of the first decentralized bank of the world is already in the pipeline, with Binance acquiring a 5-percent stake along with other notable investors.
As mentioned above, the bank is going to be the first ever decentralized bank. Many experts, both enthusiasts, and detractors, are interested in the development. “This is fascinating as a concept,” remarked Marc Ostwald, ADM Investor Services International’s global strategies. “Obviously they’ll have to meet anti-money-laundering regulations. The question will be, how do regulators view this?”
Also, the bank will be needing a nod from Malta’s respective regulators in the said sector, which it possibly might, since the country is famous for its crypto-friendly regulations. “We are honored to be chosen as the location of the first global community-owned bank,” remarked Silvio Schembri, one of Malta’s officials. (italics mine)
“A Lot Can Happen In 3 Short Months”
“Malta is the fusion ground for traditional and blockchain finance now,” Changpeng Zhao, Binance’s CEO, said in a tweet. “A lot can happen in 3 short months.” Zhao is also anticipating that his company will be profiting a ridiculous amount from $500 million to $1 billion when this year concludes. They may indeed reach the minimum, as they have already gained about $300 million in the first half of this year.
As to the decentralized bank, it will be partnering with Neufund, a fundraising platform, issuing its “legally-binding equity tokens.” But equally worth considering is the approval that the bank will be seeking from the European Central Bank.
As to how the bank will fare as a decentralized bank, with no predecessor to compare its system to, the world is yet to see. But with crypto exchange juggernaut Binance backing the cause, they just might make the impossible happen, even if it takes the collaborators more than three months.