The Union Bank security tokens will be in alignment with Liechtenstein’s Financial Market Authority (FMA). According to a Union Bank statement, the tokens will be closely followed by the Union Bank Payment Coin, a stable coin that is fully backed by a fiat currency such as the Swiss franc.
Headquartered in Liechtenstein, Union Bank will become the world’s first fully licensed and regulated bank to issue its own security tokens.
Union Bank, which primarily offers corporate banking services to companies in Germany, Switzerland, Austria, Liechtenstein and the Middle East, has long been active in the cryptocurrency and blockchain field. It partners with crypto-brockers and crypto-advisors “to facilitate efficient and transparent conversions between crypto and fiat currencies”.
“Our goal is to become the world’s first blockchain investment bank,” said Mohammed H. Dastmaltchi, chairman of the board of directors, adding that “our fiat-backed Union Bank Payment Coin has the potential to disrupt the approach to international trade and international cross-border transactions”.