Cryptocurrency giants, Polychain and Binance are now funding a crypto-friendly bank that is based in Malta. The bank is known as Founders Bank and is supposed to kick operations in 2020.
Brain Behind This Initiative
Paula Pandolfino may appear to some people as a walking contradiction. This is due to the fact that she is both a banker and a Bitcoin enthusiast. The Malta-native was personally involved in BTC investment in 2016. She is one of the founders of the Founders Bank, which will open in the coming year. Having invested in the coin at its early days, Pandolfino now believes that crypto will soon rule the world. Therefore, she sees the need of having a full crypto banking service. Founders Bank aims to be that banking pillar for the crypto ecosystem. The bank has been able to raise a total of $10 million. They still need an additional $30 million to attain their goal of offering the best crypto banking services.
Bank’s Leading Investors
This upcoming bank has worked with some of the best investors in the crypto space. The leading investors include Polychain Capital, a hedge fund, and crypto exchange Binance, which has its headquarters in Malta. The other top investor in this project is Carduus Asset Management, which a Czech company. According to Joe Eagan, the president of Polychain, the investment was greatly inspired by his personal experiences. This came after his bank struggled to look for banking partners back in the year 2016. As of now, a number of institutions now serve the crypto customers. They include Germany’s WEG Bank AG, New York’s Metropolitan Bank, and California’s Silvergate Bank.
Working On The Right Products & Services For The Market
Changpeng Zhao, who is the CEO of Binance, has stated that his firm will be one of the first customers of Founders Bank once it starts operations. But according to the bank’s founders, they are still waiting for the EU banking licenses. In the meantime, they are learning from the investors on the best services and products to offer to the market. Pandolfino has stated that having Binance as their main investor has assisted them a great deal. They have been able to achieve a lot recognizing the pain points for any crypto organization.
Lessons Learned So Far
Launching a crypto bank is not an easy task. Founders Bank had originally planned to raise capital with the equity tokens. However, the plan was aborted to avoid issues with the process of licensing. According to Pandolfino, the bank might be forced to explore complaint ways to work with the tokens in the coming future. It can be remembered that she was one of the advisors behind the legislation of the Malta’s Virtual Financial Assets. The process lasted for more than twelve months. But it came up with a European gateway for innovation of compliant in the cryptocurrency market. She said that Founders Bank’s secret sauce is in building an anti-money laundering and KYC platform in the market.