German developer selects Stellar for €20m blockchain bonds

Vonovia, a DAX 30 constituent, issued €20m in digital bonds on the Stellar blockchain. Security tokens will be used to delegate ownership rights in real estate.

What a great way to start 2021! @Vonovia_SE a #DAX30 company, issues a bond on a public permissionless #blockchain. The security token was offered via @firstwiremarket. We are proud to be the tech partner providing the underlying #tokenization #technology!https://t.co/rYO8Whm2sc pic.twitter.com/kKGC5KeFdQ

— Bitbond (@Bitbond) January 13, 2021

“Digitisation gives us the opportunity to finance ourselves faster, cheaper and more simply,” said the company’s CFO Helene von Reder.

Earlier, a Bochum-based developer tapped financing on Germany’s capital markets using traditional instruments.

To issue blockchain bonds, Vonovia partnered with the online platform Firstwise. The token issuance process is transparent, and transactions are tracked in real time. The release states that the approach meets professional standards.

The CFO said she hoped that tokenised bonds would enable Vonovia to attract new investors from around the world.

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