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Liechtenstein’s Union Bank AG last week announced plans to issue its own security tokens in alignment with the country's regulatory authority FMA. This will be closely followed by its Union Bank Payment Coin – a stable coin that is fully backed by a fiat currency.
With this, Union Bank AG said that it will become the world’s first fully licensed and regulated bank to issue its own security tokens.
The bank already supports initial coin offerings (ICOs) and clients by collaborating with crypto-brokers and crypto-advisors to facilitate efficient and transparent conversions between crypto and fiat currencies. Through this initiative, it will extend and improve its existing services and offerings.
The announcement comes as part of the bank’s larger efforts to become a full-service blockchain investment bank. Union Bank AG said that it will eventually adopt blockchain technology fully throughout its processes and supporting technology.
In an official announcement dated August 17, the bank said:
“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.”
The bank said it will be working with Verum Capital AG on this initiative, a Switzerland-based blockchain advisory boutique.
“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,” Chairman of the Board of Directors M.H. Dastmaltchi said.
