Countries in Europe have been open about using blockchain technology in improving their financial spheres. Out of this, Germany has been one of the stalwart examples of a region that has adopted blockchain as well as the concept of cryptocurrencies.
New reports now state that Bank von der Heydt had partnered with Bitbond to release their own euro stablecoin. This is aimed to facilitate financial placements in tokenized securities.
Sources have revealed that the partnership between the bank and the startup will result in a plethora of developments of updates. The tie-up will utilize the Stellar blockchain which will then be used by institutions as well as private companies. The bank’s official statement read:
“The advantages of digital securities lie above all in virtualization, i.e. the elimination of the previously required documented securitization. As a result, securities can be traded directly without an intermediary, making financing much cheaper and easier to implement. Instead of a share, you get a token that, like Stellar, Bitcoin, Ethereum and Co., is based on the blockchain system.”
The bank added that as of the start of the New Year, the crypto custody business was incorporated into the German Banking Act [KWG] as a separate financial service. Customers now need to gain permission from BaFin to offer custody of crypto values within the German market.
With the latest proposal, investors within the bank will be able to purchase the euro stablecoin that will be issued by von der Heydt. Users integrated into the system will be able to convert their holding euros into stablecoins. The founder and CEO of Bitbond, Radoslav Albrecht stated that digital payment will happen much faster than how it was occurring now.
The main advantages of the tie-up were that the transfers will occur in real-time. At the same time, on-chain delivery versus payment of securities is set to occur in an instantaneous fashion. The banks using the technology does not need to involve a third party paying agent but can provide everything independently.