A new security token is currently under development which, upon launch, will be the world’s first cryptocurrency backed by a fully regulated bank. Liechenstein’s Union Bank AG released a new statement announcing “a transformative Crypto Currency and Blockchain initiative: the fully licensed bank in Liechtenstein will be the first bank ever to issue its own security tokens, closely followed by a fiat-backed Union Bank payment coin.”
The Union Bank Payment Coin is a stable coin that is fully backed by the Swiss Franc. The new security token is reported to be in alignment with the Federal Market Authority of Liechenstein–Union Bank’s regulatory authority.
Union Bank is taking the first steps to position itself as a full-service blockchain investment bank. The bank plans to eventually fully adopt blockchain throughout its processes and supporting technology. The new blockchain initiative is being done in partnership with Swiss blockchain company Verum Capital AG.
“In the future, Union Bank AG will be 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,” reads the announcement.
Chairman of the Board of Directors M.H. Dastmaltchi said,
“Our 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 our customers and intermediaries alike. 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. 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.”
Union Bank AG is a fully licensed and regulated bank based in the European Principality Liechtenstein, bordered by Switzerland and Austria. Union Bank AG primarily offers corporate banking services to companies in Germany, Switzerland, Austria and the Middle East. Liechtenstein has historically served as a safe haven for blockchain companies, and Union Bank AG reports to already be servicing a number of ICO clients. Union Bank AG offers special services to these clients which include crypto-brokers and advisers “to facilitate efficient and transparent conversions between crypto and fiat currencies.”
“Being deeply immersed in the international trade of goods and services as well as the support of crypto and blockchain companies, Union Bank AG is in a unique position to develop and implement cutting-edge solutions that will greatly benefit its main customer segments,” reads the announcement.
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