Zand, the UAE's first fully licensed AI-powered digital bank, has received approval from Dubai's Virtual Assets Regulatory Authority (VARA) to offer digital asset and cryptocurrency custody services. This milestone positions Zand as the first Emirati bank to provide institutional-grade custody solutions under its banking license.
Key Developments
1. Institutional-Grade Crypto Custody Services
- Zand will safeguard private keys in UAE-based Hardware Security Modules (HSMs) compliant with global security standards.
- Services target corporate and institutional clients, bridging traditional finance (TradFi) with digital assets.
2. AED-Backed Stablecoin Launch
Zand CEO Michael Chan announced plans to introduce:
- The first AED-denominated stablecoin (1:1 pegged to UAE Dirham).
- Enhanced integration between TradFi and decentralized finance (DeFi).
Leadership Insights
Mohamed Alabbar, Zand Chairman:
"VARA’s approval marks a milestone for Zand and the UAE’s digital economy. It underscores our commitment to innovation and sustainable growth, aligning with the UAE’s vision as a global financial hub."
Michael Chan, Zand CEO:
"Our custody services redefine UAE banking. Coupled with our stablecoin, we’re pioneering tools for the digital economy."
UAE's Crypto Ecosystem Growth
- AE Coin: Recently licensed as the first AED stablecoin, enabling low-cost payments and DeFi applications.
- Regulatory Progress: The Central Bank’s preliminary approvals reflect the UAE’s proactive stance on crypto innovation.
FAQs
1. What services does Zand’s VARA license cover?
Zand can now provide regulated custody for cryptocurrencies and digital assets, ensuring institutional-grade security.
2. How does Zand’s stablecoin differ from AE Coin?
Both are AED-backed, but Zand’s stablecoin focuses on banking integration, while AE Coin targets broad payment solutions.
3. Why is HSM storage significant?
Hardware Security Modules offer military-grade protection for private keys, meeting global compliance standards.
👉 Explore how UAE leads in crypto innovation
👉 Learn about institutional crypto custody