Euro stablecoin launched on Stellar by one of Europe’s oldest banks

Spread the love

The EURB is fully regulated and backed 100% by Euros, allowing banks and institutional investors to use the cryptocurrency without exposure to counterparty risk.

Germany’s Bankhaus von der Heydt, or BVDH, has launched a Euro stablecoin on the Stellar network.

The bank claims the token is the first of its kind to be issued by a banking institute.The EURB stablecoin, which went live today, was developed on the Stellar blockchain in partnership with tokenization and digital asset custody technology provider Bitbond.

The asset, which is fully regulated and backed one for one with Euros, will not be openly traded on exchanges due to tight regulatory and know-your-customer requirements.

If a customer wants to acquire the stablecoin, a fiat currency transfer is held in an escrow account at the BVDH, which triggers the issuance of the EURB. The announcement states that developers of financial applications can immediately utilize the token to settle asset transfers on-chain. The underlying platform, built by Bitbond, gives full control of the stablecoin’s security to the bank, including mechanisms for burning and minting the token.

RECOMMENDED READ:  Stablecoin shares in crypto exchanges reached a record all-time high

BVDH, which was established in 1754, has traditionally focused on institutional clients in securitization-related transactions. The choice to use Stellar and Bitbond (who have been working together since 2019) was made after almost a year of exploring distributed ledger technology, BVDH managing director Philipp Doppelhammer explained:

“We were drawn to Bitbond and Stellar due to the ease in which assets are issued and managed on the network.”

Doppelhammer stated that the EURB’s first use case will be for “cross-border money transfers” for blockchain payments company SatoshiPay’s business customers.

The lack of a fully licensed bank backing today’s stablecoins is their main shortfall, BVDH business development manager Lukas Weniger stated. Bitbond founder and CEO Radoslav Albrecht noted:

“Banks normally wouldn’t feel comfortable using [stablecoins] like Tether or USDC, due to the potential counterparty risk that is behind them […] They prefer to work with stablecoins issued by banks, and the same is true for institutional investors.”

The German regulator Federal Financial Supervisory Authority has already provided their approval for Bitbond to issue tokenized bonds on Stellar.

RECOMMENDED READ:  Some US banks can now use stablecoins to conduct payments and other activities - OCC

Earlier this week, German private bank Hauck & Aufhäuser announced its first crypto fund, the HAIC Digital Asset Fund I, launching Jan. 1, 2021, which will include BTC, Ether, and Stellar’s XLM.

 174 Interactions,  2 today

Stablecoin shares in crypto exchanges reached a record all-time high

Stablecoins like Tether are once again entering crypto exchanges, possibly leading to another upward turn in crypto markets. In the Read more

Adult website Pornhub adds XRP, BNB, USDC, and DOGE to its payment methods.

Pornhub, one of the leading adult online pornography content providers, has added XRP, BNB, USDC, and DOGE to its list Read more

Why U.S. Federal Reserve Eyeing Its Own Crypto To Protect Stabilcoin Technology

The US Federal Reserve needs its own digital currency to protect against the possible overnight spread of stablecoin technology, says Read more

Post  exit UK request  rules for cross-border stablecoins from crypto community about

Besides seeking to describe the stablecoins, the U.K. It aims to determine how close it wants its crypto rules to Read more

RECOMMENDED READ:  How Ethereum market progress riding on 2.2% staked in ETH 2.0 - Buterin

Leave a Reply

Your email address will not be published. Required fields are marked *

Contact Us