One of Europe’s largest banks launches its own digital token

Belgian banking group KBC Group launched a euro-linked digital token called Kate Coin. The instrument is intended for use within the organisation’s ecosystem and its partners.

KBC creates a first in Europe with the Kate Coin, its own digital coin based on blockchain https://t.co/zHEoJrzCW5 #kbcgroup #digital coin #innovation pic.twitter.com/VxVLQbtcg6

— KBC Group (@kbc_group) June 16, 2022

According to the press release, Kate Coin is a digital token built on KBC’s exclusive blockchain. Private clients will be able to purchase the stablecoin via the bank’s mobile app. The credit institution stressed that outside the KBC ecosystem the token has no value.

“A customer can purchase Kate Coin as a reward for loyalty, when purchasing a particular product or taking certain actions. The tokens can be used, for example, to obtain a discount on another KBC product,” explained Eric Luts, the group’s Director of Innovation.

KBC Group warned that tokens cannot be transferred to other users or exchanged for euros.

Kate Coin is backed by KBC reserves and tied to the euro, but “is not cryptocurrency or a stablecoin.” The organisation calls the instrument “a programmable digital coin.”

On 19 June the bank will test the token at Werchter Boutique music festival. KBC staff will be able to pay for snacks and drinks with Kate Coin.

KBC Group is one of Europe’s largest banking groups. For 2021, it управляла assets worth around €340.34 billion.

In May 2022, the Belgian Financial Services and Markets Authority introduced mandatory registration for cryptocurrency exchanges and custodial wallet operators.