Liechtenstein’s Union Bank AG becomes the first licensed bank to launch its own cryptocurrency

Liechtenstein’s Union Bank AG has announced that they will be launching their own cryptocurrency. This marks the bank as the first regulated and licensed bank to set foot in the cryptocurrency space.

They announced:

“… a transformative Crypto Currency and Blockchain initiative: the fully licensed bank in Liechtenstein will be the first ever to issue its own security tokens, closely followed by a fiat-backed Union Bank Payment coin.”

The bank stated that the bank’s cryptocurrency token will be launched in alignment with the Financial Market Authority, the regulatory authority of Liechtenstein. The coin is called Union Bank Payment Coin and will be backed by fiat currency.

The bank is popular for providing services for companies located in Germany, Switzerland, and Australia. Moreover, the bank has always supported Initial Coin Offerings [ICO]s and cryptocurrencies. They have partnered with several cryptocurrency brokers and advisors with the sole purpose to support their customers by providing seamless conversion from cryptocurrency to fiat currency.

They further stated that they will be improvising their current services which are provided to the customers. Moreover, the bank will be embarking itself as a “full-service blockchain investment” bank and will be moving forward by adopting the technology completely by implementing it in all the processes. Union Bank will be collaborating with Verum Capital AG, a leading blockchain firm in Switzerland, in order to achieve their goals.

Furthermore, the bank said that they would become ‘one-step crypto and blockchain provider’ which would bring together the new technology, i.e, the blockchain technology and the cryptocurrency with the best practices of traditional banking.

M.H. Dashmaltchi, the Chairman of the Board of Directors 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 trading banking with the possibilities inherent in the blockchain technology.

The Chairman further added:

“As such, our fiat-backed Union Bank Payment Coin has the potential to disrupt the approach to international cross-border transactions. With our initiative we are investing in the future and becoming the world’s preeminent blockchain investment bank.”

Recently, Binance, one of the biggest cryptocurrency exchange platform, announced that they would be collaborating with Liechtenstein Cryptoassets Exchange [LCX] with the main agenda of launching crypto-fiat exchange platform.