Bankhaus von der Heydt, a bank in Germany would soon<a href="https://twitter.com/StellarOrg/status/1227292108865720320?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1227292108865720320&amp;ref_url=https%3A%2F%2Fzycrypto.com%2Fgerman-based-bank-teams-up-with-bitbond-to-issue-tokenized-security-tokens-on-the-stellar-blockchain%2F"> launch</a> its tokens, on the public Stellar blockchain. Since 265 years the bank has been operating in Munich. The bank’s decision of using Stellar as a platform did not come as a surprise, because just like its counterpart<a href="https://www.cryptoknowmics.com/crypto/xrp-biggest-critic-messari-founder-claims-ripples-cross-border-remittance-is-impressive/"> XRP</a>, Stellar was also created for banking systems.
<h2>New Stablecoin</h2>
On February 10, 2020, while making the announcement, the bank mentioned that, it has collaborated with Bitbond, a Berlin-based blockchain firm. The merger would strengthen blockchain technology in tokenizing the securities. Since the year 2013, Bitbond has been offering blockchain-centric solutions to the market. It has been reported that the partners would develop a euro stablecoin for its investors so that they (investors) could use them (stablecoin) to buy tokenized securities on the Stellar platform. 
<blockquote class="twitter-tweet">
One of the oldest banks in Europe is developing a special-purpose euro stablecoin...built on <a href="https://twitter.com/hashtag/Stellar?src=hash&amp;ref_src=twsrc%5Etfw">#Stellar</a>! <a href="https://t.co/rA3gU2l3nD">https://t.co/rA3gU2l3nD</a>
— Stellar (@StellarOrg) <a href="https://twitter.com/StellarOrg/status/1227292108865720320?ref_src=twsrc%5Etfw">February 11, 2020</a></blockquote>
The report further stated that at present the firms have been offering custody solutions of regulated<a href="https://www.cryptoknowmics.com/crypto/swiss-regulated-digital-asset-bankseba-planned-to-raise-95mn/"> digital assets</a> to its clients. With the help of custody solutions, the clients could easily store their converted euros in the von der Heydt.

Recently, a spokesperson of the bank has said, “Securities can be traded directly without an intermediary, making financing much cheaper and less complicated.”
<h2>Digital Securities To Be Provided Through Private Placement</h2>
The Bankhaus von der Heydt has mentioned that at present, the general public could not use the tokenized platform for digitizing securities. The bank also stated that it would be offering digital securities via private placements. 

In late-November 2019, the German lawmakers passed<a href="https://www.cryptoknowmics.com/crypto/germany-plans-major-digital-token-regulation-effort-in-2019-says-source/"> legislation</a> in favour of cryptocurrencies. According to their legislation, which became effective on January 01, 2020, the banks in Germany were allowed to directly trade and store digital assets.

Presently, under the new anti-money laundering law, around 40 banks in Germany have signed-up to<a href="https://www.cryptoknowmics.com/crypto/bafin-eases-licensing-process-for-foreign-crypto-custodians/"> BaFin</a> for granting permission to offer regulated custody for digital currencies. It has been reported that blockchain technology is gaining popularity in money systems.

Bitbond Merges With German-Based Bank To Offer Stablecoin

Bankhaus von der Heydt, a bank in Germany would soon launch its tokens, on the public Stellar blockchain, in collaboration with Bitbond.

Jyoti is a graduate from GGSIPU and has done her PG Diploma in English Journalism from IIMC. Presently, she is working as a content writer with Agio Support Solution Pvt. Ltd. Her aim is to provide informative content about cryptocurrency and blockchain, to the tech-enthusiasts.

Bitbond Merges With German-Based Bank To Offer Stablecoin

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