Blockchain

Liechtenstein Based Union Bank to Become ”the First Regulated Bank to Issue Its Own Security Tokens”, Fiat Backed Stable Coin

Liechtenstein Based Union Bank to Become ”the First Regulated Bank to Issue Its Own Security Tokens”, Fiat Backed Stable Coin

The Liechtenstein-based Union Bank AG has recently issued a press release, revealing a major foray into the realm of cryptocurrencies and security tokens that will be undertaken in full accordance with inputs from the FMA, Liechtenstein’s regulatory authority.

Specifically, the press release states that Union Bank will ”be the first regulated bank ever to issue its own security tokens”. This blockchain-friendly stance, however, does not come out of the blue – according to the press release, Union Bank has previously supported ICOs.

Moreover, the bank also notes that it ”supports clients by partnering with crypto-brokers and crypto-advisors to facilitate efficient and transparent conversions between crypto and fiat currencies”.

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Union Bank is mostly said to offer corporate banking services to companies which operate in Germany, Austria, Switzerland as well as the Middle East.

The firm argues that being in this cross-section of international trade and goods as well as supporting cryptocurrency and blockchain companies gives it a ”unique position” to ”develop and implement cutting-edge solutions” for the benefit of its general clientele.

After issuing its own security tokens, the firm will focus on launching a Union Bank payment coin, which will in effect be a stable coin backed by fiat currencies – such as the Swiss franc, according to a proposal by the financial institution.

The coin has tentatively been dubbed the ”Union Bank Payment Coin” (UBPC) and is seen by Union Bank as a further step in realizing the bank’s ambition of becoming a full-service blockchain investment bank.

According to the press release, Union Bank will be supported by the Switzerland-based blockchain boutique Verum Capital, and the overarching ambition of Union Bank is to become a ”one-stop crypto and blockchain solution provider”.

Moreover, the bank states that it intends to ”embrace and integrate the new world of blockchain technology and crypto assets”, as well as to combine this with existing best practice for financial providers.

Union Bank’s Chairman of the Board of directors, M. H. Dastmaltchi added that the goal of this venture is ultimate to reduce costs and increase efficiencies relating to blockchain applications, as well as ”open up opportunities for our customers and intermediaries alike”.

He notes that being a fully licensed and regulated bank provides Union Bank with a ”privileged position” to integrate the power and potential of the blockchain with the advantages of traditional banking.

Image Source: “Flickr”

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