Long there were rumors and announcements about it. Now it is official. TokenPay announced that it has entered into a contract with German-based WEG Bank AG, which has transferred 9.9% of the shares in WEG Bank AG (share certificates) to TokenPay Swiss AG.
If approved by the German authorities, TokenPay also has the option to acquire a further 80.1% of the shares in WEG Bank AG.
In this medium post the TokenPay team explains, how it came to the purchase of the company shares. Accordingly, TokenPay was approached in December 2017 by WEG Bank AG. The bank expressed an interest in offering FinTech solutions that align with the New Economy while traditionally continuing to serve its existing customer base. Ultimately, the technology behind TokenPay was crucial to the deal.
WEG Bank AG now intends to implement the TokenPay blockchain technology as soon as possible and is already taking measures to enable customers to use the technology. As announced earlier in the run-up to the partnership, TokenPay, in partnership with Verge, will also issue a debit card to follow in the near future. In addition to traditional debit cards for account holders, there are also plans to develop a prepaid crypto gift card store.
However, the partnership with WEG Bank AG should not be the only one. As TokenPay writes, the team is in contact with a bank in Lichtenstein about a potential minority stake and partnership that has made a similar offer to TokenPay. The first talks have already started and the TokenPay team is optimistic that there will be a positive outcome. In June another meeting with this still secret bank should take place.
For example, as TenX or LitePay discovered, banking licenses are the sacred grail of international trade and a prerequisite for issuing crypto-debit cards. In this respect, the TokenPay partnership with WEG Bank AG is, in our view, a major step in the successful issue of a TokenPay / Verge debit card.
Partnership with Verge
TokenPay has confirmed that the co-branded debit cards will be available to consumers shortly after the official conclusion of the agreement for use with Verge (XVG) and the platform’s native token, TPAY. Furthermore, TokenPay plans for XVG “a comprehensive integration into the TokenPay platform rollout initiatives”.
TokenPay and the Verge teamed up a few weeks ago in a controversial crowdfunding campaign that enabled Verge’s partnership with Mindgeek, the pornography platform’s parent company Pornhub and Brazzers. TokenPay contributed 66,500,000 XVG tokens to the campaign and made sure that crowdfunding was achieved.
The good news for TokenPay is also good news for Verge.