The crypto lending platform Nexo has been ordered by several California securities regulators to halt its crypto yield product. The state claims that the company’s interest-bearing accounts qualify as unregistered securities that require proper disclosures and legal protections. The enforcement action was announced by the California Department of Financial Protection and Innovation (DFPI) on Monday. The Department said its action was part of a larger investigation of companies offering crypto interest accounts.” “The DFPI has undertaken aggressive enforcement efforts against…
German real estate group Vonovia has revealed that it has issued a $24 million bond via the Stellar (XLM) blockchain. This initiative was also driven by the recent approval of a bill in the European country that authorizes digital securities’ issuance.
$24 Million Digital Bond on Stellar Network
Vonovia revealed details of the digital debt bond via a press release on its website. According to the report, the $24 million worth of digital bonds will be issued on Stellar blockchain and sold on the German online marketplace, Firsts. The newly issued digital bonds will be used to transfer real estate ownership rights under the highest security standards. The real estate group further revealed that the digital bonds would have a shelf life of three years.
Vonovia views blockchain technology as a cheaper and faster way to tokenize bonds, making them accessible to new investors. Speaking on the development, Helene von Roeder, the CFO of Vonovia, believes that the company needed to gain experience using new technology “We want to try out the new technology to gain experience. We can well imagine that this will play an important role in the capital market in the future. Issues are transparent and traceable in real-time, which guarantees a professional transaction standard. She added.
Blockchain adoption has been increasing in Germany, as the government has passed several friendly bills in recent months. This latest development comes after the government passed a bill to introduce electronic securities in mid-December. Also, it was revealed that the bill was part of the Federal government’s blockchain adoption strategy.
Stellar Gaining Popularity among Institutions
The Stellar blockchain network has increased in popularity among companies wishing to utilize blockchain technology. The issuance of the digital bond by Vonovia comes after other similar initiatives on its blockchain. Last December, Stellar blockchain was chosen by a German bank, Bankhaus von der Heydt, to issue its stablecoin EURB. This was also followed by reports that the Ukrainian government worked with Stellar foundation to develop its CBDC (Central Bank Digital Currency).
Stellar is one of the fastest blockchains and is developed as a platform that enables quick cross border transactions. Therefore it is no surprise that Vonozia adopted the blockchain for its digital bond. At the time of writing, Stellar’s native token XLM ranks 9th on the coin rankings. The price of XLM is around $0.30, an increase of 125% over the last two weeks.