The EURB is fully controlled and 100% Euros backed, enabling banks and retail buyers to use the cryptocurrency without counterparty risk exposure.
A Euro stablecoin has been introduced on the Stellar network by Germany’s Bankhaus von der Heydt, or BVDH.
The bank says the token is the first of its kind issued by a financial entity. In cooperation with tokenization and digital asset custody technology provider Bitbond, the EURB stablecoin, which went live today, was built on the Stellar blockchain.
Due to strict regulatory and know-your-customer standards, an asset that is fully regulated and backed one by one with Euros cannot be publicly traded on exchanges.
If a customer wants to acquire the stablecoin, a fiat currency transfer is held in an escrow account at the BVDH, which triggers the issuance of the EURB.
The announcement notes that creators of financial apps will use the token instantly to settle on-chain transactions of money. The underlying network, developed by Bitbond, gives the bank complete control of the stability of the stablecoin, including burning and token minting mechanisms.