Home Technology Digital Transformation UAE: Zand launches institutional-grade digital asset custody service The service is tailored for corporate and institutional clients, providing top-tier security by storing private keys in onshore UAE hardware security modules by Gulf Business December 16, 2024 Image: Zand Zand, the UAE-based fully licensed, AI-powered digital bank, has officially launched its Digital Asset Custody service, becoming the first UAE bank to offer institutional-grade digital asset custody under its banking license. The service has been approved by the Virtual Asset Regulatory Authority (VARA). Tailored for corporate and institutional clients, Zand’s custody services ensure the highest levels of security, with private keys stored in onshore UAE Hardware Security Modules (HSMs) to meet global standards. The bank’s innovative use of blockchain technology and AI allows it to seamlessly bridge the gap between traditional finance (TradFi) and decentralised finance (DeFi), enabling clients to securely manage both fiat and digital assets. A key milestone for Zand and country’s digital economy Mohamed Alabbar, chairman of Zand, emphasized the milestone for both the bank and the broader UAE digital economy, stating, “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.” Michael Chan, CEO of Zand, expressed gratitude for VARA’s continued support and highlighted the significance of the new offering. “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.” He also pointed to Zand’s upcoming launch of a UAE dirham-backed stablecoin, which he believes will further enhance the integration of TradFi and DeFi, reinforcing Zand’s leadership in the space. The custody service is backed by advanced security protocols, continuous audits, and a dedicated team of information security experts, ensuring clients’ assets are both secure and accessible.