Vonovia, a top real estate company in Europe that’s part of the DAX 30, is issuing a €20 million digital bond on the Stellar Blockchain in partnership with Firstwire and Bitbond, a press release on Jan 13 reveals. It comes less than three weeks after the German cabinet made into law a bill legalizing electronic securities.
A €20 Million Bond
In the statement, the real-estate firm said they are driving towards digitizing their finance division.
As part of that initiative, they are issuing a fully-registered €20 million bond with a three year-term. These tokens will follow the strictest security standards regarding the transfer of ownership of the bond.
This is the second time Vonovia is working with Firstwire. In September 2019, they issued a €50 million promissory note on the platform that brings together investors and bond issuers.
The move first highlights their belief in technology and the need to adapt to changes. It also heeds to call Germany’s leadership to digitize processes.
Aligning with Germany’s Blockchain Strategy
Following the approval of a bill meant to spur digitization and align their goals with Germany’s blockchain strategy, Vonovia is now leveraging blockchain technology and digitization to “finance themselves faster” via a platform offering better transparency.
Commenting, Helene von Roeder, the Chief Financial Officer (CFO) of Vonovia, said:
“We want to test out the new technology to gain experience with it. It’s easy to imagine that it will play a significant role in the future capital market. Issuances are transparent and traceable in real-time, which guarantees a professional transaction standard. Additionally, we can use it to approach new investors around the globe.”
The issuance of the security token has the potential to expand tokenization significantly and “structurally change the range of financial products and services,” especially from the investor’s perspective.
Stellar Network continues to register success. The Stellar Development Foundation is working with Ukraine’s Ministry of Digital Transformation to develop a digital asset ecosystem, including a central bank-backed digital currency (CBDC).