Investment company Blockchains LLC recently bought the Kirkwood Bank of Nevada for $28 million. The move was said to ensure financial inclusion for Blockchains.
Security for Blockchains
In a report published on The Nevada Independent, Blockchains CEO Jeffrey Berns revealed that he purchased the bank as security for Blockchains and other blockchain-connected businesses.
According to Berns, his primary objective for buying Kirkwood Bank was essentially as security for him and to ensure that his company had access to the financial structure.
He added that he also wanted to build an environment where the blockchain community and other legitimate businesses trying to create projects for the betterment of the world would have a bank that understands what they want to achieve and is not afraid.
Negotiations Started 2017
Blockchains’ CEO started negotiating with the bank in 2017. The acquisition agreement was allegedly signed back in August 2018. The $28 million is said to be broken down to $25 million for the bank buy-out and $3 million allocated for investment capital.
Berns claimed that he bought the bank using a holding company that is not aligned with Blockchains. He also said that bank holding firms are the only organizations that can own a bank, and if Blockchains has a bank, it would also report the same way a holding company would.
Blockchain-Powered Banking Solutions
Meanwhile, Kirkwood Bank’s president allegedly stated that the management and day-to-day operations wouldn’t be affected by the acquisition. However, Berns was reported to be keen on having a contract between the bank and Blockchains that would see them developing blockchain-powered banking solutions set to be released by 2020.