German bank launches Euro stablecoin via Stellar blockchain, which is located on the Stellar blockchain.
The German bank von der Heydt (BVDH), has launched a Euro-based stablecoin, which in turn is located on the Stellar blockchain. The EURB is fully hedged in Euros, which enables banks and investors to use it risk-free.
The Euro stablecoin is covered in a ratio of 1: 1 by reserves in Euros and is fully regulated. Although the EURB is immediately available, it is not available for trading on stock exchanges, which is due to the strict regulatory requirements for obtaining customer information (“Know Your Customer”).
Developers of financial apps can use the crypto token to process blockchain-based transactions. The associated platform, which was developed by Bitbond, gives the bank complete control over the stablecoin, including the processes for creating and “burning” the individual units.
The German bank states that this is the first stablecoin of its kind to be released by a bank. The stablecoin, traded under the abbreviation EURB, was developed in cooperation with the crypto service provider Bitbond and runs on the Stellar blockchain.
When a customer purchases the Euro stablecoin, one unit of the European common currency is first deposited into an escrow account of the BVDH, which in turn triggers the issue of one unit of the EURB.