Euro-based stable cryptocurrency launched by von der Heydt Bank

Bank von der Heydt, Munich, founded in 1754, announced a partnership with blockchain financial services provider Bitbond. The bank plans to launch the stable euro-based cryptocurrency to facilitate the sale of tokenized securities.

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The partnership will allow the bank to tokenize digital titles on the Stellar blockchain and subsequently offer them to institutional clients through private placements.

Investors will be able to purchase tokenized securities using stable euro-based cryptocurrency. It will be issued and stored by the Bank of von der Heydt.

Radoslav Albrecht, founder and CEO of Bitbond, said:

“Digital euro payments will take place much faster, there will be a real-time DvP online (delivery versus payment of securities). The bank does not have to involve a third party to manage the payments, it can offer everything independently. “

Institutional customers can subsequently purchase tokenized securities in a simplified manner. A representative from Bank von der Heydt said that tokenization can simplify capital sales and eliminate much of the associated costs:

“Securities can be traded directly without an intermediary. This aspect makes financing much cheaper and less complicated. ”

Case for the euro-based stable cryptocurrency launched by von der Heydt

Customers will be able to securely store the tokenized capital in a custody solution developed by Bitbond and von der Heydt in 2019. It received approval from German financial regulator BaFin this year.

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Earlier this year, Germany announced changes to the law that require providers of cryptocurrency services to be licensed.

Bitbond received BaFin approval for custody of tokenized securities in January 2019, after the law was implemented. The company also launched the first offer of security tokens (STOs) in Germany during the same year.

Established in 2013, the company originally functioned as a blockchain lending platform for small businesses. Bitbond managed to raise over 5 million euros in 2017 to finance new loans.