Mongolian bank to offer crypto-related services

Mongolian bank to offer crypto-related services

By Benson Toti - min read

The bank has partnered with several companies in the cryptocurrency and blockchain space for this endeavor

It has been revealed that the Trade and Development Bank of Mongolia (TDB Bank), which is based in Ulaanbaatar, will soon be offering a variety of crypto services like custody, deposits, remittance, loans, and crypto asset management.

DDaily, a Korean news outlet, reported that a blockchain company named Hexland and a white label tech company named Delio have both agreed to begin working on the TDB Bank. The TDB Bank is one of Mongolia’s oldest banks and has 50 branches across the nation. It ranks second out of 17 Mongolian banks in terms of total assets.

However, the deal is not limited to Hexland, Delio and the TDB Bank. The media outlet also wrote that a Mongolian mineral resource and blockchain company called the MDKI, is also included in the agreement. The MDKI is also known for being partners with Bitfury, a crypto mining giant.

The TDB Bank mostly works with industrial clients and has an impressive portfolio that includes over 400 Mongolian companies. It offers them services such as project loans, trade loans and financial consulting.

Meanwhile, Hexland, which was founded by former Samsung developers, works on providing services such as blockchain smart contract development and verification, wallet development, and the like.

An official from Delio, who has gone unnamed, told DDaily that this partnership helped the company become “full swing to enter the global virtual asset financial market,” with the most resources possible. However, the companies do not yet have an official date for when they would be able to start offering these crypto services to Mongolians.

In 2019, the city administration of UlaanBaatar agreed to partner with Terra, a blockchain company from South Korea, with the plan of eventually replacing the payment methods for utility bills and government subsidies with the Terra stablecoin.

Since 2018, Mongolia has displayed interest in integrating cryptocurrencies and other similar technologies. The country’s largest mobile telecoms operator, Mobicom, became the country’s first licenced entity to issue a digital currency of its own according to a report that was filed by the official state media outlet, Montsame.

The CEO of the Mobicom Corporation, Tatsuya Hamada, explained that ATMs and cards will soon be replaced by digital currencies.

“As digital currencies have begun to circulate, ATMs and cards will become a thing of the past as well.” he said, “It also expected to support further development of FinTech technology and payment system.”