Vonovia, one of the leading housing companies in Germany, announced that it has issued €20 million ($24.3 million) worth of digital bonds on Stellar blockchain. The newly launched three-year bond will use Stellar blockchain technology for the transfer of real estate rights.
According to the official announcement, Vonovia collaborated with a Germany-based online marketplace, Firstwise to issue the tokens. The company plans to make the entire process of issuance more convenient and efficient with the use of Stellar blockchain.
Vonovia also outlined the recent initiatives by the German government to digitize the country’s financial system as a part of a wider blockchain strategy for greater transparency, market integrity and investor protection.
Commenting on the issuance, Helene von Roeder, CFO at Vonovia, said: “Digitalization offers us the opportunity to finance ourselves faster, easier and more cheaply. The company has been successfully financing itself through the capital market for years and uses a wide range of financial instruments to do so. We want to try out new technology like Stellar to gain experience. We can well imagine that it will play an important role in the capital market in the future. Emissions are transparent and traceable in real-time, which guarantees a professional transaction standard. Additionally, it will enable us to attract new investors globally.”
In December, Finance Magnates reported about the approval of the German cabinet to eliminate the paperwork in securities transactions through blockchain technology. It seems like Stellar is becoming the preferred choice for governments around the world to build a digital economy. Earlier this month, Ukraine announced the selection of the Stellar blockchain network to build the country’s virtual assets ecosystem and its national digital currency.
Stellar (XLM) cryptocurrency has gained significant value since the start of 2021. XLM jumped more than 100% in the first 10 days of this year and reached a market cap of $6.6 billion after the recent announcements. As of writing, Stellar is trading around $0.30.