German Bank Launches EURO Stable coin on Stellar Blockchain With Bitbond Partnership

German Bank Launches EURO Stable coin on Stellar Blockchain With Bitbond Partnership

The German Bankhaus von der Heydt, or BVDH, has launched a Euro stable coin on the Stellar network. The EURB is fully regulated and is 100% supported by euros, allowing banks and institutional investors to use the cryptocurrency without counterparty risk.

First of its kind

The bank claims that the token is the first of its kind issued by a banking institution. The EURB stable coin went live yesterday and was developed on the Stellar blockchain. This was in association with Bitbond, which is a digital preservation technology company.

The EURB will not be openly traded on exchanges due to strict regulations and KYC requirements.

If a customer wants to get Euro stable coin, He will transfer fiat currency to an account with the BVDH, which will then issue EURB against the fiat currency. The announcement states that financial application developers can immediately use the token to settle on-chain asset transfers. The underlying platform, built by Bitbond, gives the bank full control over the stable coin’s safety, including mechanisms for burning and issuing the token.

BVDH was founded in 1754 and has traditionally focused on institutional clients in securities. The choice to use Stellar and Bitbond, which have been working together since 2019, was made after almost a year of research into distributed ledger technology, stated BVDH Director Philipp Doppelhammer:

“We were attracted to Bitbond and Stellar because of the ease with which assets are issued and managed on the network.”

Doppelhammer stated that the first use of the EURB would be for cross-border transactions for business customers of blockchain payment company SatoshiPay.

The lack of a fully backed bank license that supports stable coins is their biggest shortcoming, stated BVDH business development manager Lukas Weniger.

Bitbond founder and CEO Radoslav Albrecht said:

Banks would normally not feel comfortable using stable coins such as Tether or USDC, due to the potential counterparty risk behind it. They prefer to work with stable coins issued by banks, and the same goes for institutional investors.

The German regulator has already authorized Bitbond to issue tokenized bonds on Stellar. The good news reached the crypto investors, and Stellar’s price sharply rose to almost 18%.

AO/X Staff