German bank tokenizes securities on Stellar

Credit: Bankhaus von der Heydt

Historical German Bank, Bankhaus von der Heydt partners with fintech Bitbond in order to offer its institutional clients investments. Special feature of these investments : they will be tokenisés, that is to say dematerialized, and acquired thanks to a stablecoin in euros.

The advantages of digital titles mainly resides in their virtualization, that is to say the elimination of the previously necessary paper securitization. Thus, the securities can be traded directly without an intermediary, which makes financing significantly less expensive and less complicated, ”analyzes in a blog post an executive of the German bank Bankhaus von der Heydt.

And for a financial actor founded in 1754, the adoption of the blockchain is undoubtedly a sign of a digital transformation underway. Bankhaus von der Heydt has indeed formalized the signing of a partnership with a German fintech, Bitbond.

Digital titles and custody service for private placements

The startup will thus provide the bank with an online loan and tokenization service platform to enable it to offer financial products for asset structuring and management using blockchain technology (the Stellar network).

The goal for Bankhaus von der Heydt is to market to its institutional clients (other investors are not affected to date) financial investments. But the bank mainly plans to dematerialize these transactions.

For this, the titles will be tokenized on the Stellar blockchain and subscribed through a cryptocurrency, a stablecoin with the euro as its underlying. Clearly, investors will be able to acquire tokenized shares through the stablecoin issued by von der Heydt, without the need for an intermediary and for real-time payments.

Regulation, an opportunity for German banks

Bank customers will also be able to convert euros to cryptocurrency, then stored in the storage solution of the German bank. A first version of the platform will go into production in early April. For the German group, it is clearly a question of establishing itself in a market booked since 1^st January only actors benefiting from regulatory approval, the BaFin.

Asset tokenization is now ready for the market from a regulatory and technological point of view and we hope that as one of the leading providers of digital asset preservation solutions on the market, we will obtain a decisive strategic advantage. on the big, less agile generalist banks, ”underlines the director of Bankhaus von der Heydt, Philipp Doppelhammer.

However, this market could develop rapidly. Bitbond reports that it is in discussions with several other banks and financial intermediaries in the fields of tokenization and conservation of digital assets.