One of the oldest banks in Europe is developing a special-purpose euro stablecoin that can facilitate private placements in tokenized securities.
Munich-based Bank von der Heydt, established in 1754, announced Monday it had partnered with blockchain financial services provider Bitbond to help integrate tokenization into its established securitization platform.
The partnership will allow the bank to tokenize digital securities onto the Stellar blockchain, which it can offer to institutional clients via private placements.
Tokenization can simplify equity sales and eliminate much of the associated frictional costs, according to the bank.
"[S]ecurities can be traded directly without an intermediary, making financing much cheaper and less complicated," a bank representative wrote Monday.
Clients will be able to securely store tokenized equity in a custody solution developed by Bitbond and von der Heydt in 2019.
Investors will be able to purchase tokenized equity using a euro stablecoin that will also be issued by von der Heydt.
Clients will be able to convert euros into stablecoins, which can also be stored in the bank's custody solution.
Radoslav Albrecht, Bitbond founder and CEO, told CoinDesk that "Digital euro payments will happen much faster, there will be a real-time, on-chain DvP and the bank doesn't need to involve a third-party paying agent but can provide everything independently."
Bitbond recieved BaFin approval for its tokenized bond in January 2019, going on to launch Germany's first regulated security token offering later that year.
German Bank to Offer Tokenized Securities Based on Stellar
Published on Feb 11, 2020
by Coindesk | Published on Coinage
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