Coinsilium Group Ltd (AQSE:COIN, OTCQB:CINGF) investee Greengage Global has withdrawn an application for a Gibraltar banking license and said it will now pursue an alternative strategy for growth and development within the United Kingdom.
Greengage, in an update to its shareholders, said that the decision was taken after the Gibraltar regulator indicated that the firm would need to significantly increase and bring forward its planned funding in order to meet anticipated launch capital requirements.
Now, Greengage told Coinsilium (and its other shareholders) that it will “build upon its strengths, and existing revenue streams, to deliver its wider vision of bridging the traditional financial services space with the new digital innovations in cryptoassets and blockchain.”
It intends to focus on revenue growth for the next six to twelve months whilst other new opportunities include pursuing an e-money licence via a white-label arrangement. Within twelve to fourteen months Greengage intends to ‘lay the groundwork’ for a UK bank licence application.
"Greengage and the team are excited about the next steps for the business which are based on concrete goals and clear achievable milestones to continue to grow revenues for the firm,” said Sean Kiernan, Greengage chief executive. “We are grateful to all of our investors and remain committed to delivering on our fiduciary responsibilities to deliver increased shareholder value."
Coinsilium chief executive Eddy Travia, added: “We fully support Greengage's new strategy and pathway to growth.
“Given the circumstances, we trust the Greengage team has made the right, although difficult, decision in withdrawing from the Gibraltar banking licence application process and focus its attention on the UK market.
"As originally envisaged at the time of making our investment in Greengage, both Greengage and Coinsilium teams have now started collaborating strategically to explore opportunities to develop regulatory compliant Decentralised Finance (De-Fi) commercial products and solutions.
“Both teams remain focused on this strategic collaboration and we look forward to providing further updates to the market in a timely fashion."