TokenPay, a Tor network-based payment platform, has officially closed a deal with Munich-based bank, WEG Bank AG, acquiring shares certificates from the German bank.
Stakes representing 9.9% of WEG Bank AG equities have been bought by TokenPay, along with the possibility of further purchasing an additional 80% in stakes following customary regulatory approval.
The bank approached TokenPay in December before inspection the blockchain platform after months of negotiations. TokenPay appointed Ernst & Young to conduct a formal financial audit of the bank which has plans of moving from real estate to blockchain technology services.
The funds for this acquisition were raised in TokenPay’s token sale which also took place in December. According to the company’s whitepaper roadmap, the blockchain platform finalized the partnership during Q2 2018, aligning with its projects planned for November.
“We were approached by WEG Bank in December 2017. The bank has interest in offering fintech solutions that will align itself with the new economy, while at the same time continuing to service its existing real estate client base in a traditional fashion. Our leading technology complex is what ultimately afforded us the opportunity to be selected by the bank for this partnership. We feel that the selection of TokenPay is a strong testament to our advanced knowledge and the amazing team that powers our platform,” stated TokenPay.
TokenPay is a decentralized payment platform that employs self-verification. They put much emphasis on user security as the system accessed can only be granted through the Tor Browser. The network is further secured by a transaction engine that requires 2-of-3 multi signatures.
TokenPay’s blockchain technology will be implemented right after the bank’s closing as they go through the procedures needed to accommodate the registering of customers from TokenPay and Verge’s communities. There are plans for traditional debit cards holders which will enable users to use their XVG and TPAY tokens in shops by exchanging the digital currency into the local fiat currency. Plans are also in place to make a pre-paid gift card store where users can purchase gift cards using cryptocurrencies.
Possible Partnership with Lichtenstein Bank
According to TokenPay, a second bank has recently approached the company about a similar minority stake and partnership. The TokenPay team plans to meet with the Lichtenstein- based bank in June and is expected to reach a partnership like the one formed with WEG.
In December, TokenPay originally was considering buying from a Vanuatu bank but it was later replaced with the German bank.
TokenPay recently made a donation of 66,550,000 XVG ($2,660,000) to finalized the fundraiser of its partner Verge, which gathered in their partnership with Mindgeek which is the owner of Pornhub. Verge has since reached Spotify as they try to land another big contract.
A number of major cryptocurrencies have tried to offer debit cards to its users including the LitePay platform which was supported financially by the Litecoin Foundation. However, in March, it appears that the project has shut down all its operations as the funding was halted after a Reddit Ask-Me-Anything session.