German Bank to Offer Tokenized Securities Based on Stellar
One of the oldest banks in Europe is developing a special-purpose euro stablecoin that can facilitate private placements in tokenized securities.
Munich-based Bank von der Heydt, established in 1754, announced Monday it had partnered with blockchain financial services provider Bitbond to help integrate tokenization into its established securitization platform.
The partnership will allow the bank to tokenize digital securities onto the Stellar blockchain, which it can offer to institutional clients via private placements.
Tokenization can simplify equity sales and eliminate much of the associated frictional costs, according to the bank. “[S]ecurities can be traded directly without an intermediary, making financing much cheaper and less complicated,” a bank representative wrote Monday.
There are no plans for von der Heydt to enable broader public access to the platform.
Clients will be able to securely store tokenized equity in a custody solution developed by Bitbond and von der Heydt in 2019. The solution received approval from the German financial regulator BaFin after changes in the law meant providers required a license to continue offering cryptocurrency custody.