Connect with us

News

Europe’s BVDH, Bitbond issue Euro stablecoin on Stellar Network

Published

on

Source: Pixabay

Bankhaus von der Heydt (BVDH), one of Europe’s oldest banks, and German tokenization and digital asset custody provider Bitbond are joining forces to issue a Euro-pegged (EUR) stablecoin (EURB) on the Stellar network.

The EURB stablecoin will be the first stablecoin issued directly by a banking institution on Stellar and one of the first of its kind in the crypto-market. EURB can be leveraged by BVDH’s customers, as well as third party developers of financial applications to settle digital asset transfers on-chain. Bitbond will integrate it into the platform it built for BVDH to use the stablecoin for securitization which includes mechanisms for burning and minting the token.

For the Stellar ecosystem, this adds a new on/off-ramp for EUR on the network, seeing as any user or business looking to connect to EUR through Stellar rails can now do so.

According to Denelle Dixon, CEO and Executive Director of the Stellar Development Foundation,

“Adding a high-quality, bank-issued euro asset to Stellar is meaningful for our users and builders on our network, powering a new wave of financial innovation, leveraged immediately by Stellar-based apps including DSTOQ, Vibrant, and Lobstr.”

According to Bitbond CEO Radoslav Albrecht, the company has been working with Stellar since 2019, a year when they issued the first-ever tokenized security recognized by the Federal Financial Supervisory Authority (BaFin), the financial regulatory authority for Germany.

BVDH’s role is to take the paying agent functionality in-house to accelerate the issuance of new securitizations and create new opportunities for banking clients who want to issue tokenized 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.

Where to Invest?

Subscribe to our newsletter

Samyuktha is a full-time journalist at AMBCrypto. Currently pursuing her Masters in Finance and Business Analytics, she is interested in cryptocurrencies, fintech, and blockchain technology adoption across various sectors.