The 266-year-old German bank specializes in institutional customers. The new stablecoin already has a use case for cross-border payments.
Bankhaus von der Heydt (BVDH), a German bank founded in 1754, has worked closely with the Bitbond Company to issue the EURB stablecoin. They developed this cryptocurrency, which maintains parity with the euro, on the Stellar network.
BVDH specializes in institutional customers and in transactions related to securitization (transfer of financial assets that provide credit rights). The issuance of EURB led to the financial institution becoming the first European bank to use a Stellar-based stablecoin.
Through this incorporation, the bank will be able to accelerate its services while offering new possibilities to its customers. Developers of financial apps will also be able to settle asset transfers through EURB.
“Our first use case is SatoshiPay, a payment company and one of the first members of the Stellar network,” said Philipp Doppelhammer, BVDH manager. The executive explained that this customer, who was already using Stellar, will now incorporate EURB into its international money transfer service.
“Bitbond and Stellar appealed to us because of how easily asset issuance and management occur on the network,” said Doppelhammer.
In this sense, the executive director of the Stellar Development Foundation, Danelle Dixon, explained that “adding to Stellar a high-quality euro asset that a bank has issued is significant” and fuels “a new wave of financial innovation.”
The representative of the non-profit organization says that “this is a testament to how traditional banking and blockchain can work together. One of the oldest banks in Europe has partnered with a FinTech company to deliver exciting innovation in the digital currency space.”
Radoslav Albrecht, CEO of Bitbond, the German company that developed the stablecoin, also referred to that case. He noted that “stablecoin issuance technology enabled them to complete [their] technological suite of digital assets.” The company also used the Stellar blockchain to develop asset custody and tokenization technology.
The Number of Stablecoins on Stellar Increases
This is not the first time that someone has developed a stablecoin on Stellar. Since the end of November, both the Argentine peso (ARS) and the Brazilian real (BRL) have had their equivalents on this network.
The 6-year-old platform Stellar seeks to offer banking solutions through blockchain technology. Its main objective is to provide a network on which developers can create low-cost, long-range financial solutions for the unbanked.
After the announcement of EURB occurred, the price of the native token of the Stellar blockchain, Lumens (XLM), increased by 21%. This crypto-asset recently went from USD 0.14 to USD 0.17.
By Alexander Salazar
