Charlie Lee, the founder of Litecoin (LTC), tweeted with Derek Capo, the CEO of TokenPay in April. The discussion soon turned into a friendly exchange of private messages, where the two cryptos enthusiasts found out they had a common concern: the banking system.
Both the Litecoin Foundation and TokenPay have encountered challenges in ensuring bank accounts security, a longstanding situation for the industry.
“Some banks close bank accounts if they have anything to do with cryptos. We saw many competitors with similar offers being cut off because they didn’t own the bank and didn’t have control,” explained Derek Capo from TokenPay.
“Why don’t we talk about having a Litecoin (LTC) debit card, so you have a real solution? Because, you know, they’ve worked so hard to get a Litecoin (LTC) debit card, I said, why don’t we talk?” recalls Charlie Lee.
The Litecoin Foundation thus acquired a 9.9 percent interest in WEG Bank AG, a previously shady German banking institution.
But the Litecoin (LTC) Foundation did not invest money in this move
TokenPay first purchased the shares and made them available to the nonprofit in exchange for technical support in the future. TokenPay also purchased another 9.9 percent (the highest permissible in Germany with no prior approval from the regulatory authorities) from WEG and is now seeking the green light to acquire 80 percent more.
If everything proceeds as scheduled, TokenPay and the Litecoin Foundation will not only have a trusted banking associate but will also transform WEG into a hotspot for customers worldwide who would like to trade fiat for crypto coins or purchase goods and services with cryptos.
Over time, after dealing with Litecoin (LTC) debit cards and cryptocurrency payment processing, both Derek Capo from TokenPay and Charlie Lee from Litecoin Foundation plan to embed banking services into the eFin decentralized cryptocurrency exchange owned by the TokenPay group.