TL;DR Breakdown:
- A German housing company issued a $24 million digital bond.
- It uses Stellar blockchain to facilitate an easy transfer of ownership rights to real assets.
As Germany opens to embrace blockchain technology in the digitization of the finance department, a housing company in the country, Vonovia, has seized the opportunity to issue registered digital bonds on the blockchain technology. Precisely, the German housing company issues these bonds on Stellar blockchain, in collaboration with an online marketplace, Firstwise, according to the press statement.
These newly-issued security tokens will be used to transfer ownership of the claims to real estate rights under the highest security standards.
German housing company adopts Stellar blockchain
By using Stellar blockchain, the German companies intend to make the entire process of transferring the ownership rights to real assets more convenient and secure. Meanwhile, the term for these fully-registered digital bonds by the German housing company is limited to three years, according to the announcement. The amount of the bonds issued on the blockchain is worth about $24.3 million or €20 million.
Having used several financial instruments in the capital market, Vonovia views the blockchain-based digital bonds as a cheaper and easier medium to finance its operations, according to the CFO of the German housing company, Helene von Roeder.
“Digitalization offers us the opportunity to finance ourselves faster, easier, and more cheaply. The company has been successfully financing itself through the capital market for years and uses a wide range of financial instruments to do so. We want to try out new technology like Stellar to gain experience,” Roeder said.
Blockchain adoption in Germany
The German government has much interest in the digitization of several sectors of the economy with blockchain technology to improve the protection of participants, market integrity, and transparency. The government body, the Deutsche Energie-Agentur (DENA), has been working effectively to implement blockchain in decentralizing the country’s energy ecosystem, as Cryptopolitan reported in October.
Later in October, Siemens announced it was developing a blockchain-based electricity trading platform in the country.
A Step-By-Step System To Launching Your Web3 Career and Landing High-Paying Crypto Jobs in 90 Days.
