$28 million, the blockchain company bought a bank

According to local media reports yesterday, blockchain incubator and investment company blockchain.com weird founder Jeffrey Berns acquired a small community bank in Las Vegas, Nevada, hoping to ensure the flow of funds, thus showing him to the center Dreams.

Blockchain

Berns said his ambitions are incompatible with the current financial system, and he is worried that the banking system will cut off his funding. The 56-year-old founder had previously announced plans to build a block city-centric smart city and e-sports venue in the Nevada desert that is as big as Renault.

He bought the Kirkwood Bank of Nevada (KBN) for $28 million, a small step in helping the emerging company achieve its ambitious goals, but it is a crucial step. In addition to financing his own projects, Berns also hopes that KBN will become a leading bank in the blockchain industry.

“This is to create a blockchain ecosystem where legitimate companies empower people and create a better world by building projects… With such a bank, they can understand what they are doing , no longer worry them."

“Many banks (for cryptocurrency companies) are hesitant. If this plan is successful, you will no longer need a bank. They are out of date.”

Berns acquired the bank through another holding company to ease filing and ownership responsibilities. In addition, he said that he plans to implement the decentralization of the company in the future and hand over power to system users.

“I don't think regulators will be happy with this,” he added, adding that he might try to deploy a blockchain at the bank and create a sandbox to test his financial technology and blockchain philosophy.

“I need a test site. I need a place to do a proof of concept with the regulator to prove that the loan can be released like this: If I have $1,000, I can invest 10 cents on 10,000 loans, and everything will go through the blockchain and Micropayment is complete, this is a very serious business."

Berns' negotiations with KBN began in February 2018, when he spent a year looking for a bank partner. He paid $25 million for the bank and an additional $3 million.

According to the FDIC (Federal Deposit Insurance Corporation), the bank's assets exceed $86.6 million, and the return on equity in 2019 is 9.14%. Since its inception in 2008, the company has never changed ownership.

The bank's president, John Dru, said that in addition to the bank name and the opening of a branch in northern Nevada, the banking business will not be adjusted for the time being. The new name of the bank is not yet known.

“I'm sure the customer won't notice any changes. All the executives will stay. The directors have not changed, they have to stay. Even the account number will not change.”

Berns also said he plans to buy or set up a 3D printing company to print his blockchain city. He is considering using an undervalued building material, industrial cannabis, in this process, and may use blockchain technology to grow cannabis on 67,000 acres.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Blockchain

Swiss exchange SIX announces investment in cryptocurrency trading platform Omniex, exact amount not disclosed

According to a report by Finance Magnates on February 25, SIX Group, an operator of the Swiss Stock Exchange, announc...

Blockchain

FTX's new CEO: FTX has been lying to banks about its mixed funds issue

FTX's new CEO claims that as early as 2020, banks had inquired about suspicious fund flows.

Bitcoin

OKX will launch a signal strategy and has now opened a signal provider recruitment.

The signal strategy function is expected to be officially launched in August to September 2023. This function will al...

Market

Wu's Weekly Picks CoinEX attacked, FTX's coin selling rules, Binance US layoffs, and Top 10 news (September 9-15)

Author | Wu's Top 10 Blockchain News This Week. US August Unadjusted CPI Annual Rate 3.7% Core...

Market

Wu said Zhou's selection Hong Kong regulatory agency opens retail trading, Curve hacked, Binance US Department of Justice progress and news Top10 (0729-0805)

Author | Wu's Top 10 Blockchain News of the Week. The Hong Kong Securities and Futures Commission has approved the li...

Blockchain

Unveiling SBF's Defense Draft of up to 250 Pages I Did What I Believe Was Right

SBF traced his development journey, from his childhood in Palo Alto to the top floor apartment he purchased near the ...