Swiss cryptocurrency infrastructure platform Taurus will provide services to the United Arab Emirates’ (UAE) Zand Bank. Their partnership will enhance Zand’s custody and tokenization options and blockchain connectivity.
Taurus’ infrastructure solutions will enable Zand to issue tokenized financial and real-world assets across permissioned and permissionless blockchains using Taurus’ node infrastructure under UAE regulation. Its custody solution will embrace cryptocurrencies, digital currencies and noon-fungible tokens as well.
Digital banking in an evolving regulatory landscape
Zand is headquartered in Dubai and has no physical branches. In 222, it became the first digitally native bank licensed by the Central Bank of the UAE (CBUAE), although it is not the first bank in the UAE to offer digital services. Taurus managing director Bashir Kazour said:
"It’s a privilege to assist Zand, a leader in digital banking, in launching their digital asset strategy in line with all applicable regulations.”
The CBUAE has been implementing a reform of the country’s digital financial market as part of the government’s financial infrastructure transformation. Those measures include tighter Anti-Money Laundering verification requirements and a crackdown on unlicensed virtual asset service providers. Those efforts paid off in February when the UAE was removed from the Financial Action Task Force’s gray list, simplifying international finance in the oil-rich country.
Crypto’s internationalization
Since its return to the good graces of the international terrorism financing watchdog, the UAE has introduced new regulations on licensing stablecoins that observers say may complicate foreign investment. Nonetheless, the UAE has seen a wave of crypto firms relocating there and receiving licenses this year, including Binance, Crypto.com, Nexo, Solana, Laser Digital, South Korea’s Hashed Ventures, Blockdaemon and Chainalysis.
Taurus integrated with the Polygon blockchain in June 2023. It is backed by investments from Swiss Arab Bank, Deutsche Bank, Credit Suisse and others, and provides services to large financial institutions that include Swiss Arab Bank and Deutsche Bank, as well as small and medium enterprises. Taurus’ geographic reach has also expanded to Turkey and Canada.