Strategic partnerships can lead to success in any industry. Cryptocurrency is no exception in this regard. Collaboration often brings out the best in companies at times. The Litecoin Foundation and TokenPay are joining forces to introduce consumer-driven crypto products and services as they buy a stake in WEG Bank.
Litecoin Foundation Makes a Move
It has been relatively quiet regarding Litecoin in recent weeks The long-standing altcoin has not seen any major updates for some time now. Charlie Lee, the creator of LTC, also sold his holdings several months ago. Ever since then, it seems this altcoin has been pushed to the background.
One of the more recent developments for Litecoin involved a debit card startup. That project, dubbed LitePay, never got off the ground. Its owner tried to complete a rather dodgy scheme which was upended at the right time. For the Litecoin Foundation and the community, it was another major setback.
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
Things are changing for the better, however, at this time. TokenPay and the Litecoin Foundation are teaming up for a strategic effort. Their joint purpose is to buy a stake in WEG Bank AG. This will potentially lead to consumer-driven cryptocurrency solutions. As TokenPay points out, the partnership will entail:
Specifically, TokenPay will directly benefit from Litecoin’s high-level blockchain mechanization capabilities. The partnership will focus on several key areas that have been identified by analysts as critical to the success of the enterprise. This includes, but is not limited to, the TPAY cryptocurrency and its vital blockchain, eFin decentralized exchange (DEX) and the EFIN coin, TokenSuisse asset management and structured financial products, WEG Bank FinTech platform including high demand consumer debit cards and the TokenPay Multisignature Transaction Engine designed for processing fast and secure crypto e-commerce payments for merchants.
The Community Seems Divided
Although this is potentially big news, the Litecoin community is not impressed. One user was quick to point out how Tokenpay has a partnership with Verge. Even so, companies can maintain multiple partnerships at any given time. Both ventures are completely different and separate, first and foremost.
Buying a stake in this German bank is an interesting step forward for both groups. If it can lead to a wider cryptocurrency adoption, all the better. Achieving such a goal will bring forth many challenges and issues. It does show the correlation between banking and cryptocurrency is becoming a lot more apparent recently.
It is expected Tokenpay and the Litecoin Foundation will acquire a 9.9 percent stake. Tokenpay already acquired this stake many months ago. They are now in the process of selling it to the Litecoin Foundation. TokenPay is buying an additional 9.9 percent of WEG Bank and seeks to buy up to a full 90 percent, pending regulatory approval. Bringing banking services to cryptocurrency can only be considered to be a positive development for the industry. One positive result of this action is that TokenPay expects to add several hundred thousand new users to its debit card platform.
Do you think the partnership between TokenPay and the Litecoin Foundation will be successful? Let us know in the comments below.
Images courtesy of Shutterstock and Twitter/@SatoshiLite.