Bankhaus von der Heydt (BVDH) which is one of Europe’s oldest banks, has issued a Euro stablecoin (EURB) on the Stellar network with the collaboration of Bitbond, a German tokenisation and digital asset custody technology provider.
The EURB is the first stablecoin issued directly by a banking institution on Stellar, an open source and decentralised protocol for digital currency to fiat money transfers which allows cross-border transactions between any pair of currencies.
BVDH, in operation since 1754, has largely focused on serving institutional clients in securitisation-related transactions. After exploring ways to make their securitisation business more efficient with DLT technology, BVDH went ahead with Bitbond‘s white label tokenisation technology.
Stellar Development Foundation, a non-profit organisation, facilitated the development of EURB and consulted with both Bitbond and BVDH regarding its technical integration.
EURB can be leveraged by BVDH’s customers as well as third party developers of financial applications to settle digital asset transfers on-chain. With the asset now live on Stellar, Bitbond will integrate it into the platform it built for BVDH to use the stablecoin for securitisation which includes mechanisms for burning and minting the token.
For the Stellar ecosystem, this adds a new on and off-ramp for EUR on the network. Any user or business looking to connect to EUR through Stellar rails can now do so.
BVDH can now take paying agent functionality in-house to accelerate the issuance of new securitisations and create new opportunities with banking clients who want to issue tokenised financial assets with full on-chain settlement.
Developers of financial applications can leverage BVDH’s EURB to settle asset transfers on-chain with a fully regulated 1:1 backed EUR stablecoin.
“Bitbond has been working with Stellar since 2019, when we issued the first ever tokenised security recognised by the Federal Financial Supervisory Authority (BaFin), the financial regulatory authority for Germany. With this delivery of stablecoin issuance technology Bitbond has completed our digital assets tech suite which, up to now, included digital asset custody and tokenisation technology.”
said Radoslav Albrecht, Bitbond founder and CEO.
“In our first use-case, SatoshiPay, a blockchain payments company and one of the earliest members of the Stellar network, will implement our EURB into its service DTransfer. DTransfer facilitates global cross-border money transfers for its business customers by exchanging different stablecoins and linking into banking systems around the world.”
said Philipp Doppelhammer, Managing Director at Bankhaus von der Heydt.
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