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- UAE AI digital bank, Zand, has received a crypto custodial license.
- Zand will offer the service to corporate and institutional clients
- The bank will also be launching AED stablecoin
Zand, the UAE’s first fully licensed AI-powered digital bank, is now able to offer digital asset, and crypto custody services after Dubai’s regulator VARA ( Virtual Assets Regulatory Authority) approved its license.
Zand is the first UAE bank to be able to offer institutional-grade digital asset and crypto custody services under its banking license. The bank will offer its crypto custody services to corporate and institutional clients.
As per a press release, Zand Bank will have the private keys protected onshore in UAE Hardware Security Modules (HSMs) to meet the highest global standards.
Mohamed Alabbar, Chairman of Zand, commented “This approval from VARA is a milestone for Zand and the UAE’s digital economy. It reflects our commitment to bold innovation and sustainable growth. Our mission is to establish Zand as a cornerstone of the UAE’s evolving financial landscape, contributing to the nation’s ambition to be a global financial powerhouse.”
ZAND to also launch an AED stablecoin
In the press release, the CEO of Zand, Michael Chan noted that Zand will also be launching an AED-backed stablecoin.
Chan added, “Our Digital Asset Custody service is a significant step in UAE banking. By providing institutional-grade security for digital assets, we are equipping our clients with the tools they need to thrive in the digital economy. The upcoming launch of Zand’s AED-backed stablecoin will further enhance our ability to integrate TradFi and DeFi, reinforcing our leadership in this space.”
The first AED stablecoin license was announced last week, by AE Coin. The AE Coin is expected to revolutionize the financial services landscape, promising an instant, secure, stable, innovative, low-cost, and efficient payment experience that will reshape the future of the digital economy.
A few months earlier the AE Coin had announced it received preliminary approval from the Central Bank.
One AE Coin will be equivalent to one UAE Dirham. AE Coin aims to empower individuals and businesses to access modern financial tools, foster financial inclusion, and support innovation in industries such as e-commerce, remittances, and decentralized finance (DeFi).
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Lara Abdul Malak
Lara Abdul Malak is a tech journalist for more than 15 years. She covers blockchain, crypto, tokenization and Web3 news coming out of the MENA region. She wrote for Cointelegraph Arabic Middle East. She studied political science at the American University of Beirut. She got interested in blockchain after interviewing Vitalik Buterin in 2014.
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