Zand, the UAE's pioneering AI-powered digital bank, has been granted approval by the Virtual Assets Regulatory Authority (VARA) to offer digital asset and crypto custody services. This landmark achievement positions Zand as the first UAE bank to provide institutional-grade crypto custody solutions under its banking license.
Focus on Institutional Clients
Zand will primarily cater to corporate and institutional clients, offering secure and reliable custody services for their digital assets. The bank emphasizes the highest security standards, with private keys for client assets protected onshore within UAE-based Hardware Security Modules (HSMs).
Mohamed Alabbar, Chairman of Zand, expressed his enthusiasm: "This approval from VARA is a momentous occasion for Zand and the UAE's digital economy. It underscores our dedication to innovation and sustainable growth. We aim to establish Zand as a cornerstone of the UAE's evolving financial landscape, contributing to the nation's aspirations to become a global financial leader."
Launch of AED Stablecoin Imminent
In addition to its custody services, Zand is poised to launch an AED-backed stablecoin. Michael Chan, CEO of Zand, stated: "Our Digital Asset Custody service marks a significant advancement in UAE banking. By providing robust security for digital assets, we empower our clients to thrive in the digital economy. The forthcoming launch of Zand's AED-backed stablecoin will further solidify our capacity to integrate traditional finance (TradFi) and decentralized finance (DeFi), reinforcing our leadership in this space."
UAE's Growing Crypto Landscape
The approval granted to Zand follows the recent announcement of the first AED stablecoin license, awarded to AE Coin. AE Coin aims to revolutionize financial services by offering an instant, secure, and cost-effective payment experience. The stablecoin is expected to drive innovation in sectors like e-commerce, remittances, and DeFi.
The UAE is actively fostering a robust and regulated crypto ecosystem, positioning itself as a global hub for digital assets. With the emergence of licensed players like Zand and the introduction of stablecoins, the country is well on its way to realizing its ambitious goals in the digital finance sector.
December 2024, Cryptoniteuae