One of the oldest banks in Europe has collaborated with Bitbond to create a stablecoin.
EURB, a bank backed stablecoin, will operate on the Stellar network
Stellar is positioning itself as a solution for stablecoins and perhaps central bank digital currencies.
Bitbond and Bankhaus von der Heydt issued a stablecoin euro EURB called. This new stablecoin will work on the Stellar network. Are banks and European nations ready to support cryptocurrency?
One of the oldest European banks, Bankhaus von der Heydt (BVDH), issued a stablecoin in euros (EURB). Together with Bitbond, the financial institution claims that it is the first euro stablecoin of its kind backed by a bank. It will run on the Stellar network.
Stellar’s token, Lumens ( XLM ), touted its technology as a more independent version of Ripple’s XRP . It is a network on which large transactions are sent all over the world.
However, despite being a non-profit alternative to XRP, Stellar has approached the banks . Some believe the company plans to be the network on which all countries will use their central bank digital currencies (CBDCs) once they are ready to launch.
We are delighted to announce that @Bitbond and Bankhaus von der Heydt are now issuing Euro Stablecoin (EURB), the first stablecoin issued directly by a banking institution on Stellar.
The collaboration between Bitbond, Germany’s largest crypto custody service, BVDH and Stellar follows this same narrative. By hosting a Euro stablecoin, Stellar can demonstrate its potential usefulness as a CBDC platform.
Bringing banks into the field
While BVDH bank (established in the 18th century) has traditionally focused on institutional clients and the need for secure transactions, it has only recently explored digital ledger (DLT) technology. Bitbond provided its tokenization technology, which apparently impressed BVDH enough to adopt it.
In a press release, Bitbond CEO Radoslav Albrecht said:
Bitbond has been working with Stellar since 2019, when we issued the very first tokenized security recognized by the Federal Financial Supervisory Authority (BaFin), Germany’s financial regulator.
Bitbond has created a special platform for the use of BVDH, allowing the burning and issuing of new tokens. Likewise, its technology can make it easier to buy stablecoin from traditional bank accounts.
Stellar has stated that EURB stablecoin can be used by BVDH clients as well as third parties. For now, it is mainly used to pay for digital transfers on the channel.
Success of the Bitbond sequel
Mr. Albrecht said the implementation of this technology has “completed” the Bitbond technology suite (which provides custody of assets and tokenization).
The EURB coin will be guaranteed on a 1: 1 basis in stablecoins. Although the technology currently only supports on-chain operations, BVDH plans to move forward with tokenization services for other large customers.