Hello there. Here is today's selection of highlights and interesting items within the Lisk ecosystem and beyond…..
Lisk working with Weg Bank; what we know.
In a Youtube live stream on Mar 11, 2019 between Litecoin Founder, Charlie Lee, and TokenPay CEO, Derek Capo, a piece of info was released that has many Liskers really excited. The live stream was on the official TokenPay youtube channel and titled "Litecoin Founder Charlie Lee and TokenPay CEO Derek Capo Give Partnership Updates". What I present to you today is a transcript of the comments made by Derek Capo relating to Lisk and the bank to allow you make your own assumptions as to what it could mean for the Lisk project.
First up though a little background info on the main players in this situation.
In TokenPay's own words….
"TokenPay was created with the fundamental desire to bridge modern-day financial institutions with the benefits of the blockchain space. With our blockchain technology platform, you can quickly and securely send and receive crypto payments in TPAY around the world in a matter of seconds. We offer simple and easy to use integrations for merchant platforms, tailored banking services, and much more."
In the Litecoin Foundation's own words…..
"We are a non-profit organization registered in Singapore with members around the globe who share the mission of advancing Litecoin for the good of society by developing and promoting state-of-the-art blockchain technologies."
WEG Bank is a specialized credit institution providing banking products to housing industry: current and deposit accounts, financing for construction and renovation projects. It also provides card facilities and Internet banking services. Its total assets in 2017 sat at 53.58 million EUR. The company is based in Ottobrunn, Germany.
In Q2 2018 Tokenpay officially closed a deal with WEG Bank AG, located in Germany. WEG Bank also made an announcement of the partnership on its website. Share certificates representing 9.9% of the equity interest in WEG Bank AG were transferred to TokenPay Swiss AG, along with options to acquire an additional 80.1% of the bank upon customary regulatory approval. This move came due to WEG bank having an 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. To the best of my knowledge this 9.9% of the equity interest in WEG Bank was then transferred from TokenPay to the Litecoin Foundation in July of 2018. The Litecoin/TokenPay strategic partnership over WEG Bank is supposed to see Litecoin tasked with providing high-level blockchain mechanization facilities, while TokenPay focuses on marketing, and putting in place a logistics partner.
Now to the transcript that I will leave you with. I transcribed it from the livestream which I have also timestamped for you HERE. All speech is from Derek Capo and directed at Charlie Lee.
"Let's see, yeah, I'd like to get into the bank update. So I think the number one thing is the bank right now is actually testing for corporations in their system. The company that they're working with right now is Lisk to actually have the first corporate account as a test. Then once that's done then they will onboard token pay and then the litecoin foundation to have the bank account. It's taken a little bit longer than expected because it has just been, you know, obviously presenting to the government all of this stuff."
"The good news is that the government has actually been pretty pretty open to it, and listening, let's put it that way. And the CEO has done an amazing job of basically contacting them every day, letting him know because it's a business at the end of the day, right. Another thing that I'd like to mention is that the bank is not only integrating their services because they have like a few things that they want to do. They're not only integrating it for themselves. So WEG bank is a very small bank, lets be very clear about that, okay. I think a lot of people don't understand that when you're a small bank you don't actually build a lot of tech infrastructure because it costs a ton of money, right, so what they did is they're using a company that basically provides infrastructure like if you want to do online banking instead of building your own online banking platform from scratch, you basically use theirs. You change the name, you label it, maybe you change the front the front end, but the whole back-end system accounting all that stuff is from them.
This network is eight hundred banks, okay, and what they're trying to do is they're right now in a committee for tech with blockchain so that the protocol or the things that they're doing for this Bank specifically is not only going to be available for WEG, but it's going to be available for all the other 800 banks so it allows for banks to be able to integrate with crypto. So the purpose of the bank is that the bank actually really doesn't touch any crypto because the government is still not comfortable with it yet but it allows the bank to be able to work with other crypto companies and have the infrastructure to be able to communicate. It's like going to a country and not speaking the language but at least having a translator to help you speak the language. I guess it's the best analogy that I can give. I think this is the good first step or first phase of the bank. It's gonna take time to get to the point where the bank actually has custody of the coins if you want that or if people want that etc. etc."
That's it for today's highlights.
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