A Liechtenstein Financial Firm, Union Bank AG, is set to issue its security token as well as its stable coin. Per a press release published on August 17, it’s a development the bank claims will make it the first fully licensed and fiat currency bank to issue its security token.
Union Bank AG, Security Tokens and Stable Coin Backed Up By Fiat
Union bank AG is on the verge of launching its stable coin which is said to be in compliance with the country’s regulatory authority FMA. The Liechtenstein Financial Firm revealed a plan to achieve this through a press release on the 17th of August through its blog.
The Chairman of the Board of Directors of Union Bank AG, M.H. Dastmaltchi stated in the release that:
“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.”
The bank will partner with Verum Capital AG, a Swiss Blockchain advisory boutique on blockchain technology. The partnership with Verum Capital AG will aid the bank become a “one-stop crypto and blockchain solution provider who embraces and integrates the new world of blockchain technology and crypto assets and the best practices of traditional banking,” as stated in the press release.
Cryptocurrencies Make Inroads in Banks
The concept of a cryptocurrency bank as proposed by the financial institution is not surfacing in the ecosystem for the first time.
A recent report shows the existence of an international cryptocurrency bank under the World Bit Bank (WBB) brand created by IT Vitsolutions, LLC. It was reported in April that it plans to expand its services by acquiring existing banks in different countries (USA, Canada, Brazil, Germany, UK, Switzerland, Turkey, India, Japan, Australia).
Another cryptocurrency bank in the process is Japan’s Mitsubishi UFJ Financial Group (MUFG), which plans to launch in early 2019.
Recently, Fred Schebesta, an Australian billionaire and co-founder of founder.com also made public his ambitions to launch a cryptocurrency investment institution down under.