Small Liechtenstein Bank Tries To Set an Example For Crypto Banking
Liechtenstein’s Union Bank AG announced their intent to become the first fully regulated bank to issue their own security token, as well as a fiat-backed stablecoin, Union Bank payment coin.
“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,” according to the official announcement. It did not specify when it could happen or when its security token and the payment coin could be released.
The bank claims it already supports initial coin offerings (ICOs) and clients by partnering with crypto-brokers and crypto-advisors to facilitate efficient and transparent conversions between crypto and fiat currencies. The new coin will serve as a way to further improve existing services.
M.H. Dastmaltchi, 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.”
The bank is also offering corporate banking and execution services (trading, equity leveraging etc.) They are primarily offering corporate banking services to companies in Germany, Switzerland, Austria and the Middle East.
The bank does not provide any financial data on its website.
Registered in 2008, Union Bank (formerly Lamda Privatbank) was ranked the 14th largest bank in Liechtenstein in 2015 in terms of total assets, having 0.06% of the domestic market share, according to the banking data provider thebanks.eu. In 2015 its total assets were CHF 36,50 million (USD 36.7 million), while the bank’s annual loss was CHF 3,7 million (USD 3.72 million). Union Bank had 13 employees in 2015, according to thebanks.eu.
Recently, Liechtenstein announced more cryptocurrency-related news. For example, crypto exchange giant Binance and Liechtenstein Cryptoasset Exchange (LCX) announced that they are setting up a new fiat-to-crypto exchange that will offer trading in Swiss francs and euros for European users. Also, earlier this year Liechtenstein’s Bank Frick became the country’s first institution of this kind to add cryptocurrency trade to its product portfolio.
The Crown Prince of the European micro-state has also been quoted as saying that “the royal family might invest in crypto”.