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The Medici Bank comes more than 500 years after the original Banco deā Medici and aims to āexpand financial opportunity across global markets.ā
A direct descendant of anĀ Italian dynasty that ran aĀ banking empire in the 1400s is launching a new bank focusing on ādigital-centric commerce and investing,ā according to aĀ news release published on May 8.
Prince Lorenzo deā Medici, president of the eponymous Medici Bank, said he has been motivated by advancements inĀ blockchain technology to start the new venture, which aims to ācreate seamless, digital customer experiences and expand financial opportunity across global markets.ā
He argued that little innovation has come from the banking sector ever since his familyās original institution, the Florence-based Banco deā Medici, pioneered the use of checks, letters of credit, double-entry bookkeeping and bank branches more than 500 years ago.
Medici Bank has said it is a fully licensed chartered bank in theĀ United States and headquartered in Puerto Rico. Its CEO, Ed Boyle, explained that the institution plans to prioritize the needs of digitally native businesses while trying to eliminate the inefficiencies and friction seen in more established rivals. He added:
āWe are building Medici Bank from the ground up, not reliant on aged infrastructures nor as an overlay on traditional banks. This is uncommon, especially in the United States where licensed challenger bank options are few and far between.ā
The collapse of the original Banco deā Medici began in the late 1400s after Edward IV, the King of England, was unable to repay loans. Nonetheless, the Medici dynasty continued to enjoy influence in other realms, with four members of the family serving as pope in the 1500s and early 1600s.
Blockchain technology is continuing to be put to the test by the banking sector. Letter of credit transactions, one of the Medici Bankās innovations, were recently simulated on blockchain consortium R3ās blockchain platform in a test involving more than 50 institutions. Last month, JPMorgan Chase unveiled plans to add new features to its blockchain-powered Interbank Information Network, which is used by 220 banks globally.
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