The advent of technology in the world of finance has solved a ton of problems in the banking sector. It has had a great impact on the entire banking industry. Banks hate decentralized currencies, as they essentially diminish their need. However, the underlying technology, blockchain has invariably caught the banking industry’s eye. Recently the Union Bank AG has made an announcement on its website that it will be launching its own security tokens. The Union Bank is located in Liechtenstein and has been providing corporate banking services to organizations based in Germany, Switzerland, Austria and the Middle East. Liechtenstein’s regulatory authority FMA has approved the tokens. The company announced that it will be releasing its own cryptocurrency as well, called the Union Bank Payment coin, that will be backed by the fiat currency Swiss franc.
The Union Bank AG is not the first ever provider of financial services who has introduced the blockchain based fintech, there are other companies like Stellar (XLM) and Ripple (XRP) who have been offering similar services to its customers. However, it is the only one that has its own security tokens that have been approved by the regulatory authority. Chairperson of the Board of Directors 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. With our initiative we are investing in the future and becoming the world’s preeminent blockchain investment bank.
The Union Bank has been avidly supportive of the blockchain projects, providing innovative solution to its clients. They offer support for the Initial Coin Offerings for various crypto ventures and also provide seamless transactions and exchanges for its clients between crypto and fiat currencies. The bank states,
Operating in the blockchain-friendly environment of Liechtenstein, Union Bank AG already supports ICOs and clients by partnering with crypto-brokers and crypto-advisors to facilitate efficient and transparent conversions between crypto and fiat currencies.
The Bank has been providing innovative solutions for its customers. With the incorporation of Blockchain technology, the company is seeking to provide fintech solutions that integrates the Distributed Ledger technology and all its benefits. The Union Bank will also take measure to improve and update its previously provided services. This is merely the first initiative of many to come, to fully incorporate the use of Blockchain technology in its entire operating environment.
In the future, Union Bank AG will be a one-stop crypto and blockchain solution provider which embraces and integrates the new world of blockchain technology and crypto assets and the best practices of traditional banking.
Union Bank will be collaborating with the Verum Capital AG. Verum Capital is an advisory boutique based is Switzerland, which has been providing quality standards and solutions to ICOs. This company will be providing post-ICO services to the Bank. Adrian Hasler, Prime Minister of Liechtenstein showed his support of the newly developed blockchain projects, the union banks cryptocurrency and the cryptocurrency exchange launched by cryptoassets, who partnered with Binance,
We are confident that Liechtenstein’s existing and future legal framework and practice provide a robust foundation for the Binance LCX and other blockchain companies to provide exceptional services here in Liechtenstein.
Briefly, many banks in other countries have also been eager to provide blockchain based solutions to the problems of the world of finance. They are introducing their own blockchain platforms and their cryptocurrencies as well to facilitate the clients all over the world who wish to deal in crypto. But the bigger concern here is that if the entire financial system becomes decentralized the need for banks would certainly be diminished if they don’t introduce other services, hence incorporating the exchange services for cryptocurrencies in addition to the traditional bank services, these banks might prevail in a decentralized world.