Charlie Lee, the founder of Litecoin, confirmed the news on Tuesday on twitter: the Litecoin Foundation and the TokenPay decentralized payment platform have joined forces to take a stake in the German bank WEG Bank AG.
The two companies will work together to offer credit cards that allow consumers to spend their cryptocurrencies on merchants.
If only less than 10% of the bank's capital has been sold, almost all of the remaining shares could be sold in the near future:
TokenPay bought 9.9% of the bank, with options allowing it to offer a total of about 90% of the bank, waiting for certain regulatory approvals, we read in a statement.
A win-win partnership
The TokenPay initiative was then the subject of a transaction with the Litecoin Foundation, which will provide it with "complete marketing and technology services" backed by Litecoin, including LTC's "strong blockchain automation capabilities".
Charlie Lee said, "This partnership [was] a great" win-win "initiative for both Litecoin and Token Pay. I look forward to integrating Litecoin with WEG Bank AG, as well as all the services it can offer, to make it easy to buy and use LTC. "
The establishment of eFin - "a secure, decentralized, hacked, impiratable, non-custodial platform of the TokenPay ecosystem" was also announced this week.
I am also excited about the support of Litecoin on TokenPay's decentralized exchange platform, eFin, added Charlie Lee.
Everything would have started on Twitter
Last April, Charlie Lee had already revealed to Finance Magnates that the two entities were "exploring" the track of the acquisition of this German bank.
Note that the idea of their partnership seems to have taken root in a simple discussion on Twitter between the creator of Litecoin and Derek Capo, the CEO of TokenPay.
Only a few hours later, we learned that the two men had signed a confidentiality agreement.
Our ecosystem, which includes the TPAY Blockchain, WEG Bank, TokenSuisse and the Litecoin Foundation offers us a great opportunity for merchant solutions, as well as a strong and diverse customer base for our crypto initiatives. "Debit cards," enthused Dr. Jorg E. Wilhelm, director of TokenPay Swiss AG. "The tangible reality of a rapprochement between the old and the new world is galvanizing.