Union Bank AG, a bank in Liechtenstein that offers corporate banking services mainly to companies based in Germany, Switzerland, Austria and the Middle East, has announced that it will be launching its own security tokens in alignment with Liechtenstein’s regulatory authority, FMA, and subsequently its cryptocurrency, “Union Bank payment coin,” which is fully backed by a fiat currency – the Swiss franc.
Also read: Regulations Round-Up: Malta Clarifies Law, UK Wealth Managers Urge FCA Action
Fiat-Backed Crypto to Disrupt International Transactions
The virtual currency would reportedly be a competitor to other similar solutions like Stellar Lumens (XLM) and Ripple (XRP). Union Bank AG says it’s operating in a blockchain-friendly environment and that it has already been supporting initial coin offerings (ICOs) and clients to facilitate efficient and transparent conversions between crypto and fiat currencies.
“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,” M.H. Dastmaltchi, Chairman of the board of directors of the bank said in a statement. “Our fiat-backed Union Bank payment coin has the potential to disrupt the approach to international trade and international cross-border transactions,” he added.
Combining Traditional Banking and Financial Technology
Union Bank says it will be collaborating with Verum Capital AG, a company in Switzerland providing expertise covering mainly post-ICO services, in order to achieve its goals. This announcement comes a few days after Cryptoassets, the Liechtenstein-based exchange, partnered with Binance, the world’s largest exchange by trade volume, to launch a fiat-to-crypto exchange in Liechtenstein.
Adrian HaslerAdrian Hasler, Prime Minister of Liechtenstein, welcomed the joint venture and said: “We are confident that Liechtenstein’s existing and future legal framework and practice provide a robust foundation for the Binance LCX and other blockchain companies to provide exceptional services here in Liechtenstein.” The alpine principality is currently working on its Blockchain Act, since March 2018, that is expected to support blockchain companies and implement a comprehensive legal framework for the crypto sector.
There are other aspiring full service blockchain banks, one of them providing such services is Palladium in Malta. Union Bank AG added in its statement that as a fully licensed and regulated bank, it is in a privileged position to combine all the advantages of traditional banking with the possibilities inherent in the blockchain technology.
What do you think about this bank in Liechtenstein issuing its own cryptocurrency? Share your thoughts in the comments section below.
Images courtesy of Shutterstock, Adrian Hasler (Facebook).
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