Nimiq Acquires 9.9% Stake in Germany's WEG AG to Become Bank's Third Crypto Firm Owner

Browser-based blockchain payments system Nimiq has acquired a 9.9 percent stake in Germany's WEG Bank AG, according to an official announcement published on April 3.

The stake acquisition comes as part of Nimiq's new strategic partnership with WEG Bank AG and Swiss-Maltese decentralized cryptocurrency exchange Agora.

The three partners are working to create a crypto-to-fiat bridge that would allow for the seamless exchange of value between crypto and traditional banking systems, the announcement states.

Trade as a vital component - focuses on crypto-fiat value transfers that do not rely on a single, centralized intermediary, and eliminate the need to entrust crypto asset owners' private keys to a third party.

Trade to WEG's system, which notably has access to the Europe-wide SEPA Instant Banking Network.

SEPA support could prospectively enable the project to roll out its crypto-fiat services with access to a network of over 2,000 banks across 20 European countries, Nimiq notes, proposing a targeted rollout time of before the end of 2019.

The partners' aim to enable the exchange of value between the crypto and fiat systems includes a focus on making fiat deposits at WEG blockchain compatible.

Notably, both the Litecoin Foundation and crypto-fiat payments firm TokenPay each own a 9.9 percent stake in WEG AG Bank - a fact that Nimiq today notes could open up the possibility of further collaborations between the bank and the crypto firms.

All three stakeholders' shares are capped at 9.9 percent, as under German banking law, no entity can own more than 9.9% of a bank without additional regulatory approval.

Major American centralized crypto exchange Coinbase has gone a step further by pursuing its own federal banking charter since spring of last year.