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TokenPay Transfers its Stake in WEG Bank to Litecoin Foundation, Making it Easier to Buy LTC With Fiat

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With the current bear trend in the crypto market, you will be hard-pressed to find any positive developments with any of the crypto projects. The story is different for Litecoin, however. In an announcement on Tuesday, the Litecoin Foundation was revealed to have acquired a near 10 percent stake in WEG Bank (a leading German institution that is working on integrating Blockchain and FinTech solutions with its services).

Slight Spike in LTC’s Value

In fact, the performance of LTC seems to have been positively impacted in light of the news; it is the only coin among the top 10 cryptocurrencies to have had a price appreciation of more than 2 percent in the last 24 hours.

The deal that benefited the Litecoin Foundation (and by extension, LTC) resulted from an agreement between TokenPay (a Blockchain and cryptocurrency company that is employing an advanced PoS algorithm to improve cybersecurity while enabling crypto to fiat payments) and the Litecoin Foundation.  

More on TokenPay

After recently announcing its partnership with WEG Bank, TokenPay was able to buy 9.9 percent of WEG Bank with options for purchasing up to 90 percent of the bank after approval of customary regulations. As it is, TokenPay will pass on its 9.9 percent stake in WEG Bank to the Litecoin Foundation in a move that will enable the two companies to form a partnership that will lead to the creation of modern customer-driven FinTech and crypto solutions.

Even though details of the 9.9 percent purchase are yet to be made public the company has already acquired another 9.9 percent of WEG Bank, with confirmed plans to exercise its options to purchase the remaining portion if the German regulators give the deal the go-ahead.

What the Two Entities Hope to Achieve

As a crypto-to-fiat payment service provider, TokenPay hopes to benefit from Litecoin’s top-tier blockchain mechanization capabilities. According to the press release, the partnership is set to focus on TPAY (TokenPay’s cryptocurrency) and the TokenPay blockchain, WEG Bank’s FinTech platform with a specific focus on Multisignature consumer debit card transaction, as well as the management of the Token Suisse asset – among other financial products.

Eventually, TokenPay hopes that the partnership will enable there to be more users of its debit card solutions, while the Litecoin Foundation, on the other hand, hopes to enable adaptability of its crypto asset (LTC). In the press release, Charlie Lee (the creator of Litecoin) is quoted saying:

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.

WEG Bank’s CEO and founder Matthias Von Hauff also weighed in on the partnership, saying that WEG Bank has “thoroughly and diligently examined the prospects of a common future” and that WEG Bank has become “convinced that the future of banking will make adoption of such modern payment methods inevitable.

Image Credit: Deposit Photos

What do you think about the partnership between the Litecoin Foundation and TokenPay? Share your opinion with us in the comments section.

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