One of Europe’s Oldest Banks Launches Stellar-based Euro Stablecoin
The gap between the world of traditional finance and the cryptocurrency world is slowly being bridged as more and more financial organizations or banking institutions from the traditional finance world are getting in touch with digital currencies with the passage of time. Another major bank has announced the issuance of a stablecoin which is pegged to the fiat currency Euro. This Euro-pegged stablecoin has been introduced by a European bank that was founded in the year 1754.
A Euro-pegged stablecoin based on the Stellar blockchain
As reported in a press release on the 9th of December by Stellar, Bankhaus von der Heydt which is considered as one of the oldest Europe-based banks in the world has issued a Euro-pegged stablecoin based on the Stellar blockchain. Called EURB, the bank has rolled out this Euro stablecoin in collaboration with Bitbond which is leading tokenization and cryptocurrency custody technology providing firm based in Berlin, Germany.
Reportedly, the bank revealed its plan for issuing a cryptocurrency backed by the Euro fiat currency back in the month of July. At that time, it disclosed its tokenization strategy as well. Now, it has acted upon its plan and has issued a Euro-backed stablecoin. As per Stellar’s announcement, this stablecoin is the first of its kind to be introduced in the European cryptocurrency market and the first to be rolled out on the Stellar blockchain by a banking institution. Moreover, the Bankhaus von der Heydt has also become the first bank to launch a fiat currency-backed stablecoin directly on the Stellar blockchain.
While explaining why the bank was “drawn to” the Stellar network and the blockchain technology startup Bitbond, the Managing Director at Bankhaus von der Heydt Philipp Doppelhammer said that they selected these startups as they wanted to ensure “the ease in which assets are issued and managed on the network.”
The Founder and Chief Executive Officer (CEO) of Bitbond Radoslav Albrecht claimed in a statement that they are working closely with the team of the Stellar network since the year 2019 when Germany’s financial regulatory watchdog known as the Federal Financial Supervisory Authority (BaFin) recognized their first-ever issued tokenized security.
Blockchain and traditional banking can work together
This development is evidence of the fact that there is a high possibility that both blockchain and traditional banking can collaborate with each other and work together, said the Executive Director and Chief Executive Officer of the Stellar Development Foundation Denelle Dixon in a statement.
“Adding a high-quality, bank-issued euro asset to Stellar is meaningful for our users and builders on our network, powering a new wave of financial innovation, leveraged immediately by Stellar-based apps including DSTOQ, Vibrant, and Lobstr,” she added.
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