One of the Oldest Banks in Europe Will Use the Stellar Blockchain

Founded in 1754, the German bank Bankhaus von der Heydt announced its cooperation with a financial services provider on the Bitbond blockchain. Within the framework of the project, a specialized euro-based stablecoin will be launched to carry out closed placements of securities.

Thanks to this cooperation, the bank will be able to tokenize securities on the Stellar blockchain and offer them to a limited circle of institutional clients. According to representatives of the bank, tokenization will simplify the sales process and will reduce associated costs.

“Securities can be traded directly without the involvement of intermediaries, which will make financing much cheaper and less complicated,” the bank said.

Bankhaus von der Heydt customers can safely store tokenized securities at the Bitbond custodian service. The decision was approved by the German Federal Financial Supervisory Authority (BaFin) after amending the legislation to allow regulated financial institutions to work with digital assets.

Securities will be sold for the bank’s own stablecoin, which customers will purchase for euros. The operation of the platform will begin in April. It is not planned to provide public access to it.

Earlier it became known that about 40 German banks have expressed interest in storing and working with digital assets.

Author: Marko Vidrih

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