The German banks have recently shown a keen interest in the adoption of crypto assets. Bank von der Hyedt has taken one such decision to opt for the Stellar blockchain ecosystem. This German bank has shown preference to utilize the technology of an existing and well-developed blockchain system of Stellar rather than developing its own ecosystem.
The major factors behind the creation of the Stellar platform have played an important role and make it a suitable existing blockchain system to adopt for banking services. The stellar ecosystem is based on an open-source decentralized network. It offers a complete financial solution. The Stellar platform can be utilized for the seamless transfer of digital money along with the option to trade with Dollar and other cryptocurrencies.
This regulated German bank has partnered with Bitbond, a Germany based tokenized bond provider, to issue security tokens using Stellar blockchain. It will further help the bank in the structuring of assets and provide transparent and faster services to its client. Bank von der Heydt is also planning to issue its own stablecoin backed by Euro.
Philipp Doppelhammer, the bank’s MD, said, “We have been observing the blockchain space with regards to financial service solutions for quite some time now as we believe that it will offer our clients outstanding added value”
Initially, traditional banks were not keen to support the cryptocurrencies and rather share an aversive view due to the claim to create an alternate payment system. The blockchain technology has greatly evolved over time, and now people understand its importance. Major companies from different section including banking are now showing interest in the use of this technology for innovation. This integration of banking services on the blockchain platform could enhance the use of digital assets. Moreover, this will be a milestone in the utilization of blockchain technology and positive news for the crypto community.
Also read: Crypto Companies Adopt Features of Traditional Banks for Growth
John is working as a professional news editor at GetIgnite. He is accustomed to finding daily reports. Therefore, this keen working and addiction towards his work, it helps him to find good news.