German Bank Sells Almost 30% of Equity to Cryptocurrency Companies
By Tyler Smith – Cryptocurrency Broker
WEG Bank AG, a German bank with affiliation to the real estate industry, sells almost 30% of its equity to cryptocurrency companies as reported by Coindesk. This could be a move to diversify the bank and provide services for those that buy and sell cryptocurrency.
WEG Bank AG has seen three different cryptocurrency companies, TokenPay, The Litecoin Foundation and now Nimiq purchase equity in their business. This could suggest that cryptocurrency companies are looking for alternative ways of acquiring banking services to operate their business. Users looking to cash out crypto could be provided with a service to converting their crypto to fiat.
The Nimiq partnership with the bank could help offer fiat liquidity to Decentralised Exchanges (DEX). The majority of DEXs are unable to interact with traditional bank accounts and users to the Nimiq system in the future could potentially sell Litecoin for fiat.
All three companies have purchased 9.9% percent equity gaining part ownership over the bank. They have chosen not to purchase more equity as German Law permits further regulatory requirements for foreign ownership stakes of ten percent or more yet have gained a considerable stake combined. We could see the crypto companies influencing the bank in a way to help innovate the industry and reduce barriers for entry.
With more partnerships and collaborations with banks, cryptocurrency companies can provide more streamlined services for engaging and encouraging users to buy and sell crypto and get involved with the technology.
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