Germany’s Bankhaus Von Der Heydt Will Use Stellar To Launch Its Stablecoin

Germany’s Bankhaus von der Heydt which is among the oldest banks in the country chose Stellar’s Network to issue its Euro-backed stablecoin in one of the first attempts of entering the crypto space. So let’s find out more in today’s Stellar Lumens news.

According to the official announcement bank on Wednesday, Germany’s Bankhaus von der Heydt said they will launch a EURB stablecoin on the Stellar Network this week. The development is a result of the partnership between itself and Bitbond which is a German startup that tokenizes real-world assets and provides more custody services:

“We’re thrilled 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.

Learn more about Bitbond, Bankhaus von der Heydt, and EURB here:https://t.co/zl4cfa7eH5

— Stellar (@StellarOrg) December 9, 2020”

Stablecoins can be regulated, unregulated or algorithmic cryptocurrencies backed on a 1:1 basis with any given fiat-crypto. They account for billions of dollars in volume every day on the market and are used for trading, arbitrage, and cross-border transfers as well as many other purposes. The EURB stablecoin is the first stablecoin that is issued by a banking institution on stellar and one of the first of its kind in the market as the press release claimed.

The press release added that the Stellar Development Foundation that supports the growth of Stellar and the development of the platform, consulted with BitBond and took part in the development of the EURB. BVDh which was in operation since 1754 has focused since the beginning, on serving institutional clients in securitization-related transactions and even explored blockchain technology and crypto in order to make it’s business operations more efficient which is where the BitBond partnership is coming from.

After the launch today, both BVDH clients and third-party developers can choose the EURB to settle the digital asset transfers on-chain and will make it another option alongside the current products like Tether and USDC. The CEO and executive director of the Stellar Foundation Denelle Dixon said that the move was a testament to the ways  that traditional banking and blockchain can function together and will bring one of the oldest banks in Europe with it:

 “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.”