European bank Bankhaus von der Heydt (BVDH) has launched a Euro stablecoin on the Stellar network. In partnership with German blockchain technology provider Bitbond, BVDH revealed that the Euro stablecoin went live on the 10th of December. Already, the German regulator – Federal Financial Supervisory Authority – has approved Bitcoin on the Stellar network.
As stated in a Cointelegraph report, BVDH said the Euro stablecoin, also called the EURB, is the first of its kind to be launched by a European banking institute. The report also noted that the Euro-backed stablecoin would not be publicly available on the exchange as a result of strict regulations and Know Your Customer requirements.
Interested customers may use fiat currency in an escrow account at the BVDH to acquire the stablecoin. Also, banks will have control over the stablecoin’s security with the underlying platform built by Bitbond.
The managing director at BVDH, Phillip Doppelhammer, said:
“We were drawn to Bitbond and Stellar due to the ease in which assets are issued and managed on the network.”
According to Doppelhammer, the first use case of the EURB will be for international money transfers. Specifically, the managing director said the cross-border transfer would be for SatoshiPay’s business customers.
Bitbond founder and CEO Radoslav Albrecht also commented on the newly-launched Euro-backed stablecoin. He said financial institutions and institutional investors would prefer a bank-issued stablecoin.
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