Binance and Polychain Are Funding a Crypto-Friendly Bank in Malta

To some, Malta-native Paula Pandolfino may seem like a walking contradiction: bitcoiner and banker.

After personally investing in bitcoin in 2016, she’s now co-founder of the upcoming Founders Bank in Malta, scheduled to open in 2020.

“Crypto will take over the world, and we need full banking services,” she told CoinDesk. “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.”

Pandolfino said the bank raised $10 million so far and is looking to raise $30 million more in the near future. The bank’s leading investors include the crypto exchange Binance (also based in Malta), the hedge fund Polychain Capital and the Czech firm Carduus Asset Management.

Polychain president Joe Eagan told CoinDesk the investment was inspired by personal experience since his fund struggled to find banking partners in 2016. Today more institutions – from Silvergate Bank in California to Metropolitan Bank in New York to WEG Bank AG in Germany – serve the crypto industry. But Eagan said there’s still a dearth of providers open to crypto projects.

“Many of our portfolio projects, we’ve seen, still have difficulty accessing banking partners,” he said, adding:

“We need to bring in new users beyond the original users of bitcoin. And to do that we need to institutionalize the rails and structures of our space, adding services like institutional custody and banking support.”

In a press statement, Binance CEO Changpeng Zhao said his company will be one of the bank’s first clients as soon as it opens. Indeed, Pandolfino said that while her team is waiting for its European Union banking license, they are busy learning from their investors precisely what products and services the sector might need. Read More...

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