At the latest since the new rules for the safekeeping of crypto assets came into force, traditional financial institutions are increasingly discovering the crypto safekeeping business for themselves. Munich-based Bankhaus Heydt is now planning a platform for the tokenisation of bonds and securitisations – including its own stable coin. The block chain know-how comes from Berlin-based FinTech Bitbond.
The digital securitisation of classic securities, i.e. tokenisation, is progressing inexorably. Digital tokens are being created for an increasing number of assets – be it real estate, works of art or ships – which are managed via a block chain. These asset-covered and regulated tokens – also known as security tokens – enable new liquidity to be created for asset owners. On the other hand, security tokens can contribute to the democratization of the investment market. For example, the new investment vehicles often enable small investors to participate in markets that were previously closed to them.
Tokenization offers customers “extremely high added value
In the meantime, more and more representatives from the classic financial sector are discovering the issuing of security tokens for themselves. The Munich bank von der Heydt is one of them. According to a press release issued by BTC-ECHO, the financial house plans to tokenize securitizations and bonds. In addition, von der Heydt wants to develop its own stable coin, the value of which reflects the euro exchange rate. Last but not least, the bank wants to position itself as one of the first licensed crypto-custodians in Germany.
According to managing director Philipp Doppelhammer, technological and regulatory advances in tokenisation have contributed to the bank’s decision to offer block-chain-based financial services itself:
“We have been observing block-chain technology in terms of financial services solutions for some time now, as we believe it will offer our customers extremely high added value. We are therefore very pleased that asset tokenization is now ready for the market from a regulatory and technological perspective […],” Doppelhammer is quoted in the press release.”
Technology from Bitbond
For the technical implementation, the bank works together with the German FinTech Bitbond. The Berlin-based company has done pioneering work in this country in the field of security tokens: BitBond was the first company to receive approval from the German Federal Financial Supervisory Authority (BaFin) for a public Security Token Offering (STO). Bitbond founder and CEO Radoslav Albrecht is looking forward to the cooperation with the Munich-based company:
“We are working with several banks and financial intermediaries on various projects in the field of tokenization and custody of digital assets. We are particularly pleased to cooperate with von der Heydt, as this bank is one of the first to use block chain technology in the area of securitization and private placements. We assume that many banks will follow this example. We are all the more pleased to be able to work with such a proven industry expert,” Albrecht commented on the cooperation.
Banks discover the crypto custody business
Meanwhile, more and more banks are opening up to the business of crypto-asset custody. This is also due to the fact that since the first of January new rules have been in force for crypto-custodians and those who want to become custodians. How Landesbanken, Sparkassen and the Bundesbank view the crypto custody business, they have revealed to BTC-ECHO in an exclusive survey.