German real estate group issues $ 24m bond using Stellar blockchain


Vonovia, a leading European real estate group, issued a € 20 million ($ 24 million) bond using the Stellar blockchain.

According to a January 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 the blockchain-powered bond has a total term of three years.

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Helene von Roeder, CFO of Vonovia, said the digitization of bonds powered by blockchain allowed the company to finance itself “faster, easier and cheaper.”

“The problems are transparent and traceable in real time, which guarantees a professional transaction standard. It also allows us to reach new investors around the world, ”Roeder noted.

Vonovia previously placed a promissory note loan of 50 million euros ($ 61 million) on the firstwire platform in September 2019.

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Vonovia’s move to digitizing bonds comes shortly after German regulators officially legalized the issuance of digitized securities at the end of 2020. In mid-December, the German government passed a law removing the requirement a paper certificate for the sale of a security, paving the way for digital securities based on blockchain technology.

The Stellar network has grown in popularity in recent months. In early January 2021, the Ukrainian government partnered with the Stellar Development Foundation to collaborate on a new ecosystem of digital assets and a central bank digital currency.

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