A major European real estate group based in Germany, Vonovia, has reportedly used the Stellar blockchain to transfer the ownership of real estate rights. The report stated that the bond issued is worth 20 million euro ($24 million).
Going by a report published on the official website of Vonovia, the firm used Stellar blockchain to issue security tokens for the transfer of real estate rights.
The report stated that the tokens were issued via an online marketplace known as firstwire, adding that the bond powered by Stellar blockchain has a total term of three years.
According to the chief financial officer of Vonovia, Helene von Roeder, blockchain bond digitization enabled the company to finance themselves faster, easier, and cheaper.
“Issues are transparent and traceable in real time, which guarantees a professional transaction standard. It also allows us to reach new investors globally.”
The move of Vonovia into bond digitization comes after German regulators officially made the issuance of digitized securities legal in late 2020.
In mid-December 2020, the government of Germany passed a law that removed the requirement to have a paper certificate for the sale of a security, clearing the way for blockchain-based digital securities.
Stellar Network Enjoys Increased Popularity
In recent months, the Stellar network has enjoyed increased popularity. In early January 2020, it was announced that the government of Ukraine has sealed a partnership with the Stellar Development Foundation to build the digital form of its national currency, which is generally known as the central bank digital currency (CBDC).
The Ministry of Digital Transformation of Ukraine and the Stellar Development Foundation (SDF) signed a Memorandum of Understanding to build a virtual assets ecosystem and national digital currency of Ukraine.
In a statement, the Digital Transformation and IT Deputy Minister of Ukraine, Oleksandr Bornyakov said:
“The Ministry of Digital Transformation is working on creating the legal environment for the development of virtual assets in Ukraine. We believe our cooperation with the Stellar Development Foundation will contribute to development of the virtual asset industry and its integration into the global financial ecosystem.”