One of the premier banking institutions in Mongolia, the Trade & Development Bank (TDB Bank) is the latest financial giant that will be making its way in the crypto industry. According to a report by an industry news source, the company, which is located in Mongolia’s capital city of Ulaanbaatar, will go all-in on the crypto space and will be offering a complete suite of services aimed at investors. The report highlighted that this new venture was because of a partnership between a blockchain development firm called Hexland, a white-label tech firm called Delio and the TDB Bank.
They have all pooled in their resources to ensure that the TDB Bank is able to offer a wide range of services, which include but are not limited to deposits, custody, asset management, remittance, and even loans. Other than the three partners, this initiative will also include the input of a Mongolian blockchain and mineral resource firm called MDKI. As of now, it remains unclear as to what kind of expertise each company will bring to the table. However, reports indicate that Hexland provides services, such as smart contract development, wallet development, along blockchain transaction verification. Since it is one of the largest and oldest banks in Mongolia, TDB Bank’s decision to enter the crypto space would undoubtedly boost hopes of crypto adoption in the nation.
Even though the bank currently only works with institutional investors, there is not much doubt that it would eventually expand its services to add individual and retail investors as well. An unnamed official from Delio disclosed that the partnership provides all parties with access to the global digital asset financial market. However, no launch date has been provided for the new crypto service for now. But, this development does market the latest push in Mongolia to become a crypto-friendly country. Nonetheless, there have been some prominent setbacks, particularly for the mining space.
Reports confirmed in August that officials in Inner Mongolia were giving some thought to an electrical policy that would prevent crypto mining firms from getting access to state-subsidized, cheap power. The Inner Mongolia Electric Power Group Co. said that the new measures would impose almost 6.732 billion yuan ($997 million) in fees and taxes on affected companies in the region. Inner Mongolia has developed quite a reputation as a hotspot for crypto mining. The easy access to a highly-skilled labor pool and cold climate of the region is quite beneficial to firms. But, the most alluring factor has been cheap electricity.
With companies like Bitmain and AntPool setting shop in the city, there is no doubt that it is a force to be reckoned with. It is not the first time that there have been reports about a potential freeze of power. A similar report had surfaced last September about five government departments proposing to curtail the growing mining space in the region. These departments include the Office of the Ministry of Industry, the Big Data Bureau, the Public State Department, the Financial Office, and the Development and Reform Commission.