According to a recent report, Germany’s Bankhaus Von Der Heydt (BVDH)is partnering with Bitbond, a digital asset custody provider, to issue Euro stablecoin (EURB) on the Stellar (XLM) network.
With the launch, EURB has become the first stablecoin to be launched on Stellar directly by a bank.
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BVDH was established more than a century ago (in 1754) and has based its business model on the service of institutional clients in securitization-related transactions.
Stellar’s developers, on their part, supported and facilitated the development of EURB as the company carried out discussions with both BVDH and Bitbound on the integration of the technology into the Stellar platform.
The deal was announced yesterday after the firms involved reached an agreement regarding the nature of the integration.
Bitbond founder and chief executive officer Radoslav Albretch stated that the company has collaborated with Tempo and Stellar Development Foundation and has received the necessary approval to issue tokenized bonds on the Stellar platform.
More user involvement
Third-party developers of financial apps and BVDH can leverage the EURB stablecoin to settle on-chain digital asset transfers.
As the digital asset is launching live on Stellar, Bitbound will be integrating it into the platform is designed for stable coins.
The integration also proves that blockchain and traditional banking can work together to achieve a single goal of providing better services for customers. And the fact that one of the oldest banks in Europe is involved in the project shows how far blockchain and digital assets have come in the mainstream.
According to the chief executive director of Stellar Development Foundation Denelle Dixon, “the goal of the integration is to deliver exciting innovation in the digital currency industry.”
He added that a bank-issued euro asset is very vital for the builders on the network as well as its users. This will usher in a new wave of financial innovation for apps such as Lobster, Vibrant, and DSTOQ.