Major German real estate group Vonovia has used the Stellar blockchain to transfer the ownership of real estate rights.
Vonovia, a major European real estate group, has issued a 20 million euro ($24 million) bond using the Stellar blockchain.
According to a Jan. 13 announcement, Vonovia has deployed the Stellar blockchain to issue security tokens for the transfer of real estate rights. The tokens were issued through an online marketplace called firstwire. Vonovia said that the blockchain-powered bond has a total term of three years.
Helene von Roeder, chief financial officer at Vonovia, said that blockchain-powered 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,” Roeder noted.
Vonovia has previously put a promissory note loan of 50 million euros ($61 million) on the firstwire platform in September 2019.
Vonovia’s move into bond digitization comes shortly after German regulators officially legalized the issuance of digitized securities in late 2020. In mid-December, the German government passed a law removing the requirement to have a paper certificate for the sale of a security, paving the way for digital securities based on blockchain tech.
The Stellar network has enjoyed increased popularity in recent months. In early January 2021, the Ukrainian government partnered with the Stellar Development Foundation to collaborate on a new digital asset ecosystem and a central bank digital currency.
via cointelgraph.com
