Blue Star Capital PLC (LON:BLU) said its investee firm SatoshiPay, in which it owns a 27.7% stake, has signed an agreement with Bankhaus von der Heydt (BVDH), one of Europe’s oldest banks, to become the first user of the bank’s fully-compliant euro-backed stablecoin (EURB).
Stablecoins are cryptocurrencies that are often pegged to a different asset or basket of assets to stabilise their value and reduce price volatility.
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The company said BDVH, in partnership with Bitcoin peer-to-peer lending platform Bitbond, has introduced EURB on the Stellar digital currency transfer network. Bitbond is responsible for the development and integration of EURB while BDVH provides its banking infrastructure and regulatory framework.
Blue Star added that EURB is the first fiat asset directly backed by a banking institution on Stellar and will allow instant money transfer on the blockchain.
The company said SatoshiPay intends to integrate EURB into its cross-border money transfer service, adding that BDVH has established a stable on and off-ramp for EURB transactions with instant euro-based bank transfers within the Single Euro Payments Area, which comprises 36 European member-states.
Blue Star added that this will provide users with an easy solution to instantly send and receive euro-based payments.
“Today’s announcement regarding the issuance of a new Euro stablecoin on the Stellar network is further evidence of the growing momentum and support building behind SatoshiPay’s DTransfer cross border payments platform for businesses. There is clearly strong appetite for the product and we look forward to reporting on the company’s progress next year”, Blue Star chief executive Tony Fabrizi said in a statement.
Shares in Blue Star were 1.4% lower at 0.18p in early trading on Tuesday.