Blockbank, a digital decentralized commercial banking entity that leverages the blockchain technology, has acquired a stake in Spire Bank, formerly Equatorial Commercial Bank Limited (ECB) and declared a strategic fintech partnership with them to facilitate a wide variety of international crypto banking activities.
The partnership is set to present the first fully licensed crypto bank offering low cost funding. The collaboration will also see Blockbank take advantage of Spire Bank’s local knowledge, experience and extensive customer base to be able to reach more customers. According to Blockbank, the Kenyan bank will provide a solid foundation for its first step into supplying secured and affordable financing options for emerging economies.
The collaboration is set to initiate the integration of commercial banking services into governments, organization and cryptocurrency companies thus enabling access to more affordable funding opportunities, which in turn will accelerate economic growth.
In addition, the partnership will also see the incubation of a DDMS smart contract blockchain system, which is the backbone of Blockbank’s platform. This will thus enable Blockbank to provide lower cost funding solutions through the Kenyan bank’s infrastructure. The fact that Spire Bank is able to provide a number of international banking services; it stands out to be a real asset to the Blockbank assembly as it will be crucial to drive the expansion of global banking capabilities.
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. In most developing countries, accessing credit is still quite expensive as sometimes the interest rates that are charged are too high.