Blockbank, a global blockchain based bank and a dealer in crypto-currencies has announced that it has purchased a stake in Kenya’s third tier Bank Spire bank and has declared strategic FinTech partnership, as a means to provide international crypto-banking services.
In a move unprecedented in Kenya’s strict and unpromising to cryptos, Spire Bank, will be instrumental in facilitating a wide variety of international Crytpto banking activity in association with Blockbank — to present the world’s first fully licensed crypto bank with low-cost funding availability.
Spire Bank, Headquartered in Nairobi top commercial banking entity, fully licensed by the Central Bank of Kenya is valued at having total asset worth of around 180million USD which originally was established as a finance company in 1983 and later commencing operations as a fully-fledged commercial bank.
With 350,000 existing customers and a firmly-established high quality reputation, the prestigious Kenyan bank provides a solid foundation for Blockbank’s first step into supplying secured and affordable financing options for emerging economies.
It is however will be interesting to see how the partnership will seat among banking regulator CBK whose governor has not been unenthusiastic about the deployment of crypto-currencies in Kenya employing a cautious approach to the digital currencies.
It is also not very clear what kind of a partnership the two banks have entered whether it is a share purchase or just a direct collaboration. A press release from BlockBank said the partnership will initiate integration of commercial banking services into crypto entities, businesses, and governments globally – creating dynamic access to more affordable funding opportunities to accelerate economic growth.
In the partnership with Spire Bank will see the incubation of a DDMS smart contract blockchain system – the backbone of Blockbank’s platform – enabling Blockbank to provide lower cost funding solutions via Spire Banks’ infrastructure. With the capacity to provide a plethora of international banking services, Spire Bank is predicted to be a real asset to the Blockbank assembly, driving the expansion of global banking capabilities for both parties.
The statement said the collaboration of these two organizations will be a major breakthrough in fostering the development of low-cost funding options for governments and commercial entities worldwide – particularly in developing economies without current access to these services.
Kenya has attracted global attention with crypto-enthusiastic population, ranked among the top ten holders of different cryptocurrencies despite the CBK not approving their use.