In this article, we will discuss about one of the oldest banks in the world to the crypto shift. A euro stablecoin is being issued by one of the oldest banks in the world and it's being done on the Stellar blockchain network. And the Bitcoin Group is trying to buy Germany's Bankhaus von der Heydt.
One of the Oldest Banks in the World to the Crypto Shift
Germany's Bankhaus von der Heydt (BVDH), established in 1754. is working with tokenization and digital asset custody technology provider Bitbond for the first direct issuance of a stablecoin by a banking institution on Stellar.
Bitbond has already partnered with the Stellar Development Foundation and Tempo to use their stablecoin, and has received approval from the German regulator BaFIN to issue tokenized bonds, also on Stellar.
Munich-based BVDH had enjoyed a pretty traditional boutique business in areas like securitization, fund administration and M&A. But a couple of years ago, it became very focused on digital assets.
The main shortcoming of stable coins in circulation today, is the general lack of a fully licensed bank behind them.
A fiat currency transfer is held at an escrow account at BVDH, which then triggers the issuance of the stablecoin. Stringent regulatory and know-your-customer (KYC) requirements mean the stablecoin will not be openly traded on exchanges.
In terms of use cases, the bank-issued stablecoins will make delivery versus payment (DvP) an efficient process carried out on a blockchain.
Bitcoin Group SE, a German investment firm focusing on cryptocurrency and blockchain technology, has agreed to acquire 100% of Bankhaus von der Heydt.
Bitcoin Group Agreements to Buy Bankhaus von der Heydt
According to the terms of the transaction, the purchase price consists of a cash payment amounting to €14 million, which could be “modified” depending on the developments in the equity of the bank, along with 150.000 shares.
The deal is subject to approval from the German Federal Financial Supervisory Authority (BaFin) and is expected to close in Q3 2023.
Established in 1754. Bankhaus von der Heydt is one of Germany's oldest banks with a history spanning more than 250 years.
Headquartered in Munich with offices in Luxembourg, the bank offers traditional banking, digital banking, security and fund services.
Bitcoin Group says the acquisition will enable it to have access to the full banking license held by Bankhaus von der Heydt, as well as its offerings of custody and tokenization of digital assets in Germany.
Bottom Line
Bankhaus von der Heydt is one of the oldest banks in the world, yet it is transforming into the blockchain and cryptocurrency world. This article is about one of the oldest banks in the world to the crypto shift.
