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TokenPay acquires stake in Germany-based WEG Bank

Published 12 July 2018

TokenPay Swiss has acquired a stake of 9.9% in WEG Bank along with options to buy another 90%, subject to customary regulatory approval.

Today, this 9.9% stake in WEGBank was further transacted to the benefit of Litecoin Foundation in exchange for a broad and comprehensive marketing and technology service agreement to benefit TokenPay and its related cryptocurrency and business operations.

As a result of this partnership, TokenPay and Litecoin combine as a leading force in creating and delivering to the market modern consumer-driven crypto FinTech solutions.

Specifically, TokenPay will directly benefit from Litecoin's high-level blockchain mechanization capabilities. The partnership will focus on several key areas that have been identified by analysts as critical to the success of the enterprise.

This includes, but is not limited to, the TPAY cryptocurrency and its vital blockchain, eFin decentralized exchange (DEX) and the EFIN coin, TokenSuisse asset management and structured financial products, WEG Bank FinTech platform including high demand consumer debit cards and the TokenPay Multisignature Transaction Engine designed for processing fast and secure crypto e-commerce payments for merchants.

Furthermore, at the same time, TokenPay has acquired an additional 9.9% of WEG Bank. It is essential to understand that under German banking law no entity can own more than 9.9% of a bank without regulatory approval.

Upon the granting of the approval, TokenPay plans to exercise its options to acquire the remaining shares of WEG Bank it is entitled to purchase.

With the prominent addition of Litecoin as a strategic marketing, blockchain technology, and logistics partner in WEG Bank and its long-standing partnership with Verge Currency, TokenPay conservatively anticipates adding several hundred thousand customers to its debit card solutions platform in the near term.

Accordingly, the technical expertise provided by Litecoin will be a tremendous benefit to the establishment of comprehensive automation guidelines and standards employed by the bank as it explores new market opportunities.

Litecoin Foundation managing director Charlie Lee said: “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.”

WEG Bank founder, and CEO Matthias von Hauff said: “The partnership with innovative institutions such as TokenPay and Litecoin might at first come unexpectedly for a very conservative institution like us.

“But we have thoroughly and diligently examined the prospects of a common future, and we became convinced that the future of banking will make adoption of such modern payment methods inevitable. We are therefore proud to have teamed up with the best in the field.”

TokenPay Swiss supervisory board head Jorg Wilhelm said: “We are elated to be in the process of acquiring a large stake in a successful business bank based in Germany such as WEG.

“Our ecosystem consisting of the TPAY blockchain, WEG Bank, TokenSuisse and Litecoin Foundation provides us with a tremendous opportunity regarding merchant solutions, along with a strong and diverse customer base for our crypto debit card business. The tangible reality of bridging the gap between the old and new world is electrifying.”

Source: Company Press Release