Germany’s Bankhaus von der Heydt (BVDH) has partnered with European digital asset platform Bitbond to launch a EURO (EURB) stablecoin on the Stellar blockchain. The stablecoin is already live and backed by 1:1 to Euro. BVDH is Europe’s oldest banking institution and the first bank to issue a stablecoin on the Stellar network. Meanwhile, Bitbond had been already been approved by Germany’s regulator BaFIN for issuing the tokenized bonds on Stellar blockchain.
Europe’s Oldest Bank Bank Issues Euro Stablecoin on Stellar
As of now, the token will not be open to exchanges pertaining to regulatory concerns and know-your-customer (KYC) rules.
For those looking to acquire the stablecoin, a fiat currency transfer is held in an escrow account at the German bank, which will then issue the EURB.
Philipp Doppelhammer, Bankhaus von der Heydt managing director, said:
“We were drawn to Bitbond and Stellar due to the ease in which assets are issued and managed on the network.”
Third-party developers of financial apps can then immediately settle the asset transfers on-chain. The underlying platform will give full control of the stablecoin’s security to the bank, including burning and minting the token.
Denelle Dixon, CEO and Executive Director of the Stellar Development Foundation said:
“This is a testament to the ways that traditional banking and blockchain can work together, bringing together one of the oldest banks in Europe with a FinTech start-up to deliver exciting innovation in the digital currency space.”
Bitbond Approved From BaFin to Issue Tokenized Bonds
Bitbond provides tokenization services to financial firms. The firm is also the first German company to receive approval from BaFin to issue a tokenized bond.
Radoslav Albrecht, Bitbond founder and CEO said:
“Bitbond has been working with Stellar since 2019 when we issued the first-ever tokenized security recognized by the Federal Financial Supervisory Authority (BaFin), the financial regulatory authority for Germany.”