Union Bank In Liechtenstein To Issue Security Token And Stable Coinbr>
Union Bank AG, a fully licensed and regulated bank based in Liechtenstein, is planning to develop its own security token.
Union Bank AG provides various banking products and services in Germany, Switzerland, Austria and the Middle East. It offers investment counseling, asset management, checking accounts, credit cards, savings and investment products, construction financing, loans, insurance products, and retirement products to private customers. The bank also supports initial coin offerings (ICO) and clients by partnering with crypto-brokers and crypto-advisors to facilitate efficient and transparent conversions between crypto and fiat currencies.
In its announcement, Union Bank claims that it will be the world’s first fully licensed and regulated bank to issue its own security tokens in alignment with Liechtenstein’s Financial Market Authority (FMA). The bank said this will be closely followed by its Union Bank Payment Coin, a stable coin that is fully backed by a fiat currency, such as the Swiss Franc.
Union Bank will be working with Verum Capital AG on this project, a blockchain boutique based in Switzerland. The project is part of the bank’s larger efforts to become a one-stop crypto and blockchain solution provider, which embraces and integrates the new world of blockchain technology and crypto assets and the best practices of traditional banking.
M.H. Dastmaltchi, Chairman of the Board of Directors at Union Bank AG, said that the bank’s goal is to become the world’s first blockchain investment bank and to provide tangible solutions which help drive efficiencies, reduce cost base and open up new revenue opportunities for their customers and intermediaries.
“As a fully licensed and regulated bank we are in a privileged position to combine all the advantages of traditional banking with the possibilities inherent in the blockchain technology,” Dastmaltchi said. “As such, our fiat-backed Union Bank Payment Coin has the potential to disrupt the approach to international trade and international cross-border transactions. With our initiative we are investing in the future and becoming the world’s preeminent blockchain investment bank.”
The announcement comes just days after crypto exchange Binance and Liechtenstein Cryptoassets Exchange (LCX) announced a fiat-to-crypto exchange that will be located in Liechtenstein. The new exchange, called Binance LCX, will be offering trading between Swiss Francs and Euros against major cryptocurrencies pairs.