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German banking house launches euro stablecoin via Stellar blockchain

The EURB is fully hedged in euros, allowing banks and investors to use it risk-free.

German banking house von der Heydt (BVDH) has launched a stablecoin based on the euro, which in turn resides on the Stellar blockchain.

As a reminder, stablecoins are cryptocurrencies that Bitcoin System achieve their namesake (value) stability by being linked to an external asset (e.g. gold or a national currency).

The German bank states that this is the first stablecoin of this kind to be released by a bank. Traded under the abbreviation EURB, the stablecoin was developed in cooperation with the crypto service provider Bitbond and runs on the Stellar blockchain.

The stablecoin is backed 1:1 by reserves in euros and is fully regulated. Although the EURB is available as of now, it is not free for trading on exchanges due to strict regulatory requirements for obtaining customer information („Know Your Customer“).

When a customer purchases the euro stablecoin, one unit of the European single currency is first deposited into a BVDH escrow account, which in turn triggers the issuance of one unit of the EURB. As the announcement states, developers of financial apps can use the crypto token to process blockchain-based transactions. The associated platform, developed by Bitbond, gives the bank complete control over the stablecoin, including the procedures for creation and „burning“ of the individual units.

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