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Summary
- Bitbond and Bankhaus von der Heydt have jointly issued a first-of-a-kind stablecoin in the European cryptomarket
- Stellar Development Foundation has advised Bitbond and BVDH on the development of EURB
One of the oldest Germany’s banks Bankhaus von der Heydt and blockchain technology provider Bitbond have successfully launched the first-ever Euro stablecoin, which is now available for trading. On 9 December, the BVDH launched Euro stablecoin (EURB) on Stellar, making it the first stablecoin to be directly issued by a banking corporation.
Bitbond and BVDH have received thorough advisory with regard to the development of EURB from the Stellar Development Foundation, a not-for-profit organisation.
With the advent of privately floated cryptocurrencies and the invariable price surge in the unit prices of various digitally backed currencies, the full-service banks are also joining the race to launch their own offering. As of now, the crypto asset market has been operated by thousands of privately-owned entities acting as a trading platform across the globe.
All about EURB
The customers of BVDH, the Munich-headquartered bank which was incorporated in the mid-1700s, and other customers transacting on third-party platforms are entitled to use the new stablecoin offering for processing the payments on-chain. Bitbond has also been planning to integrate the stablecoin into the securitisation framework following its live usage on Stellar.
The securitisation platform seems to be ready to institute the Euro stablecoin that includes automatic mining of the stablecoin and burning of tokens.
The securitisation transactions provided by BVDH and the in-house white label tokenization technology of Bitbond resulted in a comprehensive synergy that helped both the organisations to transform the securitisation business to distributed ledger technology.
The entities and individual users who are willing to get the access of EURB through the Stellar network are now eligible to proceed further, BVDH said.
Stellar Development Foundation supports the growth and development of Stellar and has counselled both the organisations on the technical integration. The creation of fresh offering and issuance of new securitisation can now be accelerated for the bank customers willing to extend tokenized products. Further, the bank’s fully regulated 1:1 stablecoin EURB can help financial app developers in facilitating the transfer of the digital assets.
Management’s take
Philipp Doppelhammer, Managing Director at BVDH, said that the bank was convinced by Bitbond and Stellar as they were easily issuing and managing assets via the network. EURB will be implemented in the DTransfer service of SatoshiPay, one of the initial members of Stellar network, Doppelhammer added.
Radoslav Albrecht, founder and CEO of Bitbond, said that the company has been working with Stellar from 2019, the period when the first German Federal Financial Supervisory Authority approved tokenized security was issued.
The introduction of a Euro stablecoin (EURB) is a “prime example” of the amalgamated ideologies of a traditional banking unit and a technology-enabled blockchain firm specialising in tokenization of debt securities, Stellar Development Foundation CEO and Executive Director Denelle Dixon said.
The inclusion of a digitally backed euro asset being issued by a traditional bank to Stellar can be of utmost importance to the developers and the users in the network, explained Dixon, adding that this could lead to a “new wave of financial innovation”.
