- German traditional bank, Bankhaus von der Heydt (BVDH) launches the Euro Stablecoin in partnership with a Fintech startup
- Stellar CEO says the coin is evidence that the traditional banks can also use blockchain
Bankhaus von der Heydt (BVDH), a leading European traditional bank, has launched a pioneer Stablecoin that is offered directly by the bank. The bank went on to state that the asset is called the Euro Stablecoin (EURB), and it was integrated on the Stellar Network.
To develop this Stablecoin, the bank had partnered with a blockchain service provider startup in Germany, Bitbond. As of press time, the crypto asset is currently trading across various crypto exchanges.
As per official announcement, the Euro Stablecoin is the first distinctive Stablecoin in the European market. This is because the Stablecoin is pegged against the Euros unlike other stablecoins in the market that are mostly pegged against the US Dollar.
The report also stated that Stellar Development Foundation also actively participated in the development of the Euro Stablecoin. The foundation has the responsibility of looking out for the interest of Stellar Network. It consulted for the German Fintech startup, Bitbond.
BVDH began operation in 1754. Since then, the bank had mostly looked at how it could serve institutional clients especially in transactions that might be related to securitization. The bank’s partnership with Bitbond gave the bank an opportunity to access blockchain technology. It is expected that blockchain would make the bank’s securitization operations more efficient and effective.
Euro Stablecoin is proof that there is room for traditional banks in blockchain — CEO of Stellar Foundation
Denelle Dixon, the CEO of Stellar Foundation, has hailed the launch of this digital asset and went on to add that the Euro Stablecoin is evidence of how traditional banking systems can use blockchain in their operations.
Dixon further said that the partnership between one of the oldest and most respected European banks and a Fintech startup to bring about the growth of an exciting product like EURB makes enormous sense for the average user and developers on the Stellar network.
Stablecoins, generally, are regulated crypto assets that are pegged to a fiat currency on a 1:1 basis. The crypto assets are mostly used to trade or generate DeFi yields, they also perform other varying functions in the crypto market.
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