A bank in the European principality of Liechtenstein will shortly issue its own cryptocurrency pegged to fiat.
Union Bank, which has concentrated increasingly on blockchain this year, said issuing its so-called “Union Bank Payment Coin (UBPC)” was a further step towards becoming a “full-service blockchain investment bank.”
UBPC will act as a stable coin, the institution explained, and will have fiat currencies “such as the Swiss franc” as its backing.
“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,” chairman of the board of directors Mohammad Hans Dastmaltchi commented in the release.
“...As such, our fiat-backed Union Bank Payment Coin has the potential to disrupt the approach to international trade and international cross-border transactions.”
Both Binance and Union Bank praised the jurisdiction’s pro-blockchain stance, indicating a desire to see functionality increase in time.
In partnership with Swiss blockchain advisory Verum Capital, Union Bank said it was now looking to introduce blockchain “throughout its processes and supporting technology.”