Litecoin Foundation Expecting Big Things After WEG Bank Deal

Litecoin founder, Charlie Lee, expects a recent 10% stake acquisition in German Bank WEG Bank to work in the best interest of the two parties. There has been growing concerns about the amount of money the company paid for the stakes and how it will benefit from the acquisition.

According to Lee, a partnership with the German Bank paves the way for them to create and deliver crypto solutions like a debit card and other innovative solutions to a wider market. The German bank has agreed to provide its world-class technology and marketing expertise that Litecoin is to leverage in partnership with its investment partner TokenPay.

“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, “said Mr. Lee.

Under the terms of the agreement, Litecoin Foundation in partnership with TokenPay Swiss Ag acquired a 9.9% stake in WEG Bank AG. The terms also include a provision for the acquisition of the remaining 90% stake, upon customary and regulatory approval.

In exchange for providing blockchain logistics and marketing expertise to TokenPay, Litecoin is entitled to the 9.9% stake, thus did not pay any cash for the stakes.  Ina addition, Litecoin Foundation is entitled to one seat in the Bank’s board.

Litecoin Foundation is to offer TokenPay its blockchain mechanization capabilities for use in its crypto and blockchain initiatives.  The company is currently working on TPAY cryptocurrency and as well as eFin decentralized exchange, that is to be powered by EFIN coin.

According to Lee, they intend to use their position in the bank to positively influence the adoption of Litecoin in the bank’s operations.  Even if they fail to sway the bank to adopt the cryptocurrency, Lee expects the Foundation to benefit in one way or another from the stake.

A deal for a mainstream financial institution, underscores the great lengths cryptocurrency focused projects are going as they seek to go mainstream. Despite the push, the companies continue to face major headwinds, especially on the regulatory front. Some countries continue to pass legislation designed to stifle cryptocurrencies operations as other remains tight-lipped on what such projects should expect on the regulatory front.