Liechtenstein's Union Bank to issue own cryptocurrency
Liechtenstein's Union Bank is taking advantage of the principality's blockchain-friendly regulations to issue its own security tokens, closely followed by the release of a fiat-backed digital currency.
The bank says the move will extends its presence in the cryptocurrency markets, where it already provides corporate support for initial coin offerings and crypto-to-fiat conversions in partnership with virtual currency brokers. The bank says it will offer its own tokens in alignment with Liechtenstein's regulatory authority FMA and, subsequently, a Union Bank Payment Coin. The currency is being billed as a 'stable coin' pegged to the Swiss Franc. Union Bank is also partnering with Swiss blockchain outfit Verum Capital, to implement distributed ledger technology across its inhouse operations as part of a bid to position itself as a full-service blockchain investment bank. Union Bank chairman M.H. Dastmaltchi says: "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."