Bankhaus von der Heydt (BVDH)—one of Europe’s oldest banks—partnered with German crypto firm Bitbond to launch euro stablecoin EURB on the Stellar blockchain.
According to a Dec. 9 announcement, the already-available EURB stablecoin “is the first stablecoin issued directly by a banking institution on Stellar.” Bankhaus von der Heydt’s managing director Philipp Doppelhammer said:
“We were drawn to Bitbond and Stellar due to the ease in which assets are issued and managed on the network.”
The news seems to be part of a broader trend of stablecoin adoption among traditional finance giants. As Modern Consensus reported earlier this month, stablecoin issuer Circle partnered with payment processing behemoth Visa to integrate its USD Coin (USDC) stablecoin into future payment cards. And in October, Circle unveiled a Stellar (XLM) version of USDC.
BVDH used Bitbond’s white label tokenization service to issue its stablecoin in order to increase the efficiency of its securitization with the help of the Stellar Development Foundation.
The bank can now act as its own paying agent for the issuance of new debt securities, speeding up its ability to issue them. The deal will also allow it to create new opportunities with banking clients who want to issue tokenized financial assets with full on-chain settlement.
Bankhaus von der Heydt was founded in 1754 and is largely focused on serving institutional clients in securitization-related transactions, so any improvement in this area is critical for its competitiveness. Denelle Dixon, the Stellar Development Foundation’s CEO and executive director said:
“This is a testament to the ways that traditional banking and blockchain can work together, bringing together one of the oldest banks in Europe with a FinTech start up to deliver exciting innovation in the digital currency space.”
Dixon also noted that EURB adds value to the Stellar ecosystem that will be immediately used by Stellar-based decentralized applications including DSTOQ, Vibrant, and Lobstr. Doppelhammer added that crypto payments firm SatoshiPay will integrate the stablecoin into its cross-border money remittance service DTransfer.
Bitbond founder and CEO Radoslav Albrecht noted that the firm has been using the blockchain in question since 2019, but this product expands the company’s offering:
“With this delivery of stablecoin issuance technology Bitbond has completed our digital assets tech suite which, up to now, included digital asset custody and tokenization technology.”