Liechtenstein's Union Bank is making use of the principality's Blockchain-friendly regulations to make sure that it issues its own security tokens, privately followed by the setting up of a fiat-backed cryptocurrency.
In a press release on Friday, Aug 17, the bank reveals that the action will expand its service in the crypto markets, where it already offers corporate and collective support for crypto-to-fiat conversions and ICOs in collaboration with cryptocurrency brokers.
The bank revealed it will provide its private tokens in conjunction with Liechtenstein's regulatory authority FMA and, afterwards, a Union Bank Payment Coin (UBPC). The crypto is currently being billed as a "stable coin" pinned to the Swiss Franc.
Union Bank and Verum Capital, a Swiss Blockchain outfit are partnering together to smoothly implement Blockchain technology throughout its in-house activities as part of a bid to position itself as a full-service distributed ledger tech investment bank.
Union Bank chairman M.H. Dastmaltchi said: "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."
This came the same week that Binance, a giant crypto exchange, launched a fiat-to-crypto exchange in the small European principality serving both Euros and Swiss francs.
Both Union Bank and Binance embraced the jurisdiction's pro-blockchain position, showing a big desire to register increased functionality in the future.