The Union Bank AG, a bank in Liechtenstein that provides corporate services to recognized companies based in Austria, the Middle East and Germany has revealed its plan to introduce their own cryptocurrency coins with the support of FMA, Liechtenstein regulatory authority and consecutively its digital currency, “Union Bank Payment Coin” that will be completely backed by the fiat currency, the Swiss Franc.
The digital currency will surely act as a tough competitor to the similar virtual currencies like the Ripple (XRP) or the Stellar Lumens (XLM).
The Union Bank AG’s team stated that it’s working on a blockchain environment and has always shown its concern to the Initial Coin Offerings (ICOs). This will also allow the bank agents for efficient and effective circulation between the crypto and the fiat currencies.
The bank’s Chairman of the board of directors, M.H. Dastmaltchi stated that:
“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. Our fiat- backed Union Bank payment coins has the capacity to disrupt the approach to international trade and international cross-border transactions.”
The collaboration of Financial Technology and Traditional Banking:
Apart from the above-mentioned goals the Union Bank also revealed that it will partner with Verum Capital AG, Switzerland based company embracing the post-ICO works, to accomplish its goals.
The news gained limelight when the Cryptoassets, Liechtenstein based trading platform collaborated with Binance, the world’s leading trading platform with an intention to introduce fiat-to-crypto exchange in the country.
The Union Bank AG is fully regulated and licensed bank is in a full move to collaborate all the merits and goodies of the traditional banking with that of the advantage of blockchain technologies.
