Founders Bank, a Malta-based bank focusing on the crypto industry, has secured the majority of its initial investment from Binance, Polychain Capital, and Czech-based Carduus Asset Management.
Reported by Coindesk on Wednesday, the crypto-focused bank has already raised $10 million and is eying to secure $30 million more.
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Announced last year, the privately-held bank was co-founded by Paula Pandolfino, a financial industry veteran and a Malta national, amid the demand for banks catering to the crypto industry. The bank is scheduled to launch its services in 2020.
“Crypto will take over the world, and we need full banking services,” Pandolfino, also the chief investment officer at Founders bank, told the publication. “We want to be that pillar of banking for the ecosystem to support how it gets done. If anything, [we’re learning] how to wean off traditional banking and getting crypto to be that platform.”
Tapping into a lucrative market
Though the digital asset investments are penetrating the mainstream financial industry, major banks are still hostile towards crypto-related companies due to the regulatory uncertainties, denying any fiat-based services to the firms.
This also encouraged small players like Silvergate Bank in the United States and WEG Bank in Germany to enter the domain and serve specifically the deprived industry. Founders Bank is planning to become another player in this high demand sector.
The Malta-based bank is raising funds in the traditional technique, it earlier considered to conduct a token sale event for the same, but backed out to avoid complications in the licensing process. It is also in line to receive a European banking license.
“Our secret sauce is centered around building a know-your-customer, anti-money-laundering platform which is fintech-focused,” Pandolfino added.
Founders Bank’s biggest notable competitor in the European market, WEG Bank, earlier this year gained a crypto trading license from the Estonian regulator, Finance Magnates reported.