Zand, a fully licensed, AI-powered digital bank based in the UAE, has officially introduced its Digital Asset Custody service, making it the first bank in the UAE to provide institutional-grade digital asset custody under its banking licence.
The service has received approval from the Virtual Asset Regulatory Authority (VARA).
Designed for corporate and institutional clients, Zand’s custody services offer the highest levels of security, with private keys stored in onshore UAE Hardware Security Modules (HSMs), adhering to global standards.
By leveraging blockchain technology and AI, the bank bridges the gap between traditional finance (TradFi) and decentralised finance (DeFi), allowing clients to manage both fiat and digital assets securely.
A significant milestone for Zand and the nation’s digital economy Mohamed Alabbar, chairman of Zand, highlighted the importance of this achievement for both the bank and the wider UAE digital economy, saying, “This approval from VARA is a key milestone for Zand and the UAE’s digital economy. It demonstrates our dedication to bold innovation and sustainable growth. Our goal is to position Zand as a cornerstone of the UAE’s financial sector, supporting the nation’s aspiration to become a global financial leader.”
Michael Chan, CEO of Zand, expressed his appreciation for VARA’s ongoing support and underscored the importance of the new service. “Our Digital Asset Custody service marks a significant development in UAE banking. By providing institutional-grade security for digital assets, we are equipping our clients with the necessary tools to succeed in the digital economy.”
He also mentioned Zand’s upcoming launch of a UAE dirham-backed stablecoin, which he believes will further facilitate the integration of TradFi and DeFi, reinforcing Zand’s leadership in this field.
The custody service is supported by advanced security measures, regular audits, and a dedicated team of information security professionals, ensuring clients’ assets are secure and accessible.
