Union Bank plans to become the world’s first fully regulated bank to issue its own security tokens. This will be followed by a Union Bank payment coin, according to the lender.
Headquartered in Liechtenstein, Union Bank will become the world’s first fully licensed and regulated bank to issue its own security tokens.
The Union Bank security tokens will be in alignment with Liechtenstein’s Financial Market Authority (FMA). According to a Union Bank statement, the tokens will be closely followed by the Union Bank Payment Coin, a stable coin that is fully backed by a fiat currency such as the Swiss franc.
Union Bank, which primarily offers corporate banking services to companies in Germany, Switzerland, Austria, Liechtenstein and the Middle East, has long been active in the cryptocurrency and blockchain field. It partners with crypto-brockers and crypto-advisors “to facilitate efficient and transparent conversions between crypto and fiat currencies”.
This will be a first ever for a regulated bank. Additionally, being in Liechtenstein means they are part of the European Economic Area (EEA) thus they may be paving the way for other EU banks. Union Bank will be working with Verum Capital AG on this project, a blockchain boutique based in Switzerland.
“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,” said Union Bank chairman of the Board M.H. Dastmaltchi.