A new kind of stablecoin has just hit the crypto space. The stablecoin, dubbed EURB, is the premier coin to be rolled out by a bank on the Stellar Network. The announcement was made via a press release by the Stellar Development foundation yesterday.
Bankhaus von der Heydt Making this Milestone Achievement
German-based bank, Bankhaus von der Heydt (BVDH), is the one spearheading this stablecoin. BVDH is well-known as one of Europe’s oldest banks. The German bank is collaborating with Bitbond, German tokenization and digital asset technology provider. The two companies came together to work on the Euro stablecoin, which officially went live yesterday, December 9, 2020.
Speaking on the launch, Radoslav Albrecht, Bitbond CEO says the project has been on-going since last year. He says that both Bitbond and Stellar started this when they received ” first-ever tokenized security.” This was recognized by the Federal Financial Supervisory Authority (BaFin), the German financial regulatory authority. “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,” says Albertch.
How Does EURB Work?
The coin is a good combination of regular banking systems with blockchain. It is backed 1:1 to the Euro, meaning it is not subject to volatility. This also reduces the crypto risk that banks and individuals will be exposed to. EURB’s availability on the Stellar network, allows its use for a wide variety of purposes. This will allow Bitbond to include a method of burning and minting the coin on BVDH’s dedicated platform for stablecoin.
EURB can also be used by customers of BVDH to carry out digital on-chain transactions. This is, however, not only limited to customers but can also be employed by developers of financial apps. The stablecoin also functions as an effective bridge between businesses who want to use the Euro through the Stellar Network. Furthermore, it presents BVDH clients with a means of issuing tokenized financial assets.
Established in 1754, BVDH has always focused on improving financial services for its clients. Today, it is one of the foremost banks to actively use blockchain in its operations. The move to issue out EURB further demonstrates the bank’s skill for innovation.