After the failure of Litepay, Litecoin forged a new partnership with the open-sourced, decentralized, and self-verifying payment platform TokenPay, according to the official announcement. Both have agreed on joint ownership of German WEG Bank AG.
TokenPay recently acquired 9.9% of WEG Bank, along with the possibility of obtaining 90% of the bank pending the customary regulatory approval.
In exchange for Litecoin’s aid with marketing and technological development, TokenPay agreed to transact their 9.9% stake of WEG Bank to The Litecoin Foundation.
After relinquishing their initial 9.9% stake in WEG Bank to The Litecoin Foundation, TokenPay acquired an additional 9.9% of the bank, as no single entity can legally purchase more than 9.9% of a bank until approved under German law.
Litecoin will be assisting TokenPay in the development of their blockchain – meanwhile, Charlie Lee, the creator of Litecoin, will be working in conjunction with TokenPay to “implement many new additions to TokenPay’s suite of built-in product offerings,” including the Lightning Network.
I'm excited to announce that @LTCFoundation and @TokenPay have entered into a strategic partnership to buy a stake in a German bank, WEG Bank AG. We plan to work on many exciting consumer-driven crypto solutions. Stay tuned! 🚀
— Charlie Lee [LTC⚡] (@SatoshiLite) July 10, 2018
TokenPay also announced that their partners at TokenSuisse will integrate Litecoin into their German banking platform (WEG AG), their merchant services platform, and their eFin decentralized exchange.
In the official announcement, Lee remarked:
“I’m looking forward to integrating Litecoin with the WEG Bank AG and all the various services it has to offer, to make it simple for anyone to buy and use Litecoin.”
WEG Bank offers financial assistance to real-estate clients. The bank’s CEO, Matthias von Hauff, said he did not initially anticipate the partnership. However, after much thought concerning the future of the crypto space, an agreement was reached.
Von Hauff explains:
“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.”
The strategic partnership will focus on several key aspects of TokenPay, including TPAY cryptocurrency and its blockchain, eFin decentralized exchange (DEX) and the EFIN coin, TokenSuisse asset management, and the WEG Bank FinTech platform, which handles consumer debit cards and the TokenPay Multisignature Transaction Engine.
Litepay’s Underhyped Successor
Litepay, although widely anticipated, did not pan out for The Litecoin Foundation as it never came to materialization, despite the hype surrounding it.
Nevertheless, it seems as though TokenPay may be Litepay’s reticent successor. This partnership provides the infrastructure for something similar to Litepay. It will be interesting to see what the future holds for both parties in this newly founded, symbiotic relationship.
Cover Photo by Joel Filipe on Unsplash