Union Bank AG of Liechtenstein to issue own Security token and ‘Stable Coin’

The Liechtenstein Union Bank has reportedly made plans to issues its own security token. This will make them the first fully regulated bank to issue its own token with plans to introduce a fiat-backed Union Bank payment coin later. This payment coin will be pegged to the Swiss Franc simplifying the process to cash out crypto.

The security token and payment coin will align with Liechtenstein’s regulatory authority the Financial Market Authority (FMA). Situated in the middle of Europe, Union Bank is part of the European Economic Area (EEA) broadening their operational reach. Union Bank’s main clients are companies in Germany, Switzerland, Austria and the Middle East offering corporate banking services.

Liechtenstein is known as a blockchain-friendly nation and promoter of the technology. Union Bank has established partnerships with crypto-brokers and crypto-advisors to provide support for ICOs and clients involved with crypto. Creating this environment will help facilitate the conversions between crypto and fiat currencies. With Union’s payment coin, investors can sell cryptocurrency to exchange for fiat more efficiently.

Union Bank will develop and improve its existing services implementing new solutions for security and efficiency. The bank hopes to establish itself as a full-service blockchain investment bank eventually adopting blockchain throughout its processes and services. Verum Capital AG is reportedly working with Union Bank on this project.

By creating a token backed by the Swiss Franc investors will be able to use the bank as a vessel of exchange. Stable coins that are pegged to a currency can be used to reduce investors exposure to the volatile nature of cryptos. If Bitcoin was predicted to decline, many investors would sell bitcoin into the stable coin which is expected to stay around the price of the asset it is pegged to.

Union Bank is hoping to become a one-stop cryptocurrency and blockchain solutions provider integrating the best practices of traditional banking with the new technology.

To make sure you don’t miss the latest news in crypto or to sell cryptocurrency head over to BC Bitcoin.

We use cookies to better provide our services. By using our services, you agree toour use of cookies.