In a new strategic partnership with TokenPay, Litecoin Foundation has acquired a 9.9 percent stake in Germany’s WEG Bank. In what started as a friendly Twitter exchange between Litecoin creator Charlie Lee and TokenPay CEO Derek Capo, the two entities agreed to a deal that will grant Litecoin an equity stake in WEG bank in exchange for marketing and technology services for TokenPay.
Litecoin Foundation believes that banking partnerships will help legitimize blockchain networks. Working with a bank should circumvent the problems that cryptoasset-related projects and companies have had in attaining banking accounts.
From WEG’s perspective, this partnership could give TokenPay access not only to Litecoin’s users but also to its technical expertise. In a recent interview, Charlie Lee highlighted that Litecoin could integrate TokenPay with the Lightning Network and help it develop its decentralized exchange.
As ARK has pointed out, WEG Bank’s decision to sell equity to a crypto-related company could “arrest the downward spiral of German bank stocks. During tough times consumers and businesses are willing to think about doing things differently.” Providing consumers and merchants with an on-ramp for both fiat and cryptocurrencies, WEG could point the way for other German banks to transform their businesses.
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