Stellar (XLM) is the ‘Obvious’ Choice Leading the Security Token Offerings (STOs) with Latest Addition
A Berlin-based fintech company, wevest Digital AG is the latest company that will be using Stellar network for its upcoming Security Token services. The company has identified Stellar as the “most suitable” platform for its new product after extensive diligence and testing.
Wevets Digital AG offers digital investment banking services to small and medium-sized enterprises (SMEs). The company plans to combine different domains of an investment bank such as corporate finance, wealth management and the offering of security tokens through a single digital platform.
Security token services have been seeing development in Germany after the Federal Financial Supervisory Authority (BaFin) approved a Bitbond’s prospectus to issue its very first digital bonds. Launched on Stellar blockchain, these represented the first fully regulated STOs in Europe. Just last month we reported VMC launching its STOs on Stellar blockchain.
Besides Comvest Holding AG, reportedly a number of “well-known” German entrepreneurs are the investors of wevest Digital AG. Now the company is leveraging the Stellar platform that is fast, scalable, and “uniquely sustainable” platform for decentralized financial products and services.
Through the incorporation of distributed ledger technology, the company believes it will strengthen its business by making the transfer of ownership and value more efficient and secure. This is especially relevant in a legacy-based financial system where the process is inefficient and costly and small companies’ restricted access to the capital make them unattractive for traditional investment banks.
Stellar the “Obvious” Choice To Offer Security Token Services
As for the reason behind going with Stellar platform. In its official announcement, the company shares, Stellar is actually build to address the inefficiencies of the financial services industry. Moreover, cross-border payments being the main application, Stellar network also offers a considerable advantage when it comes to issuing digital assets and facilitating the crypto exchange.
So, the efficiencies that Stellar network provides will help wevest Digital AG to further help SMEs gain access to equity financing.
“Stellar was an obvious choice — it combines simplicity, speed, cost efficiency and met all our requirements,” said Didier Goepfert, Head of Product at wevest. “We are glad to join the Stellar ecosystem along with several other European companies, contributing to the adoption of blockchain-based products and providing SMEs with easy and efficient access to equity financing through electronic securities.”
Furthermore, the ease of on-chain operations such as ownership transfer from off-chain operations like KYC & AML is an added feature that is important for wevest customer groups and regulators.
“We’re thrilled for wevest to become the latest German fintech to join the Stellar ecosystem,”
said Boris Reznikov, Director of Partnerships at Stellar.org.
“wevest’s investment platform takes advantage of what the Stellar network does best — facilitating the efficient transfer and exchange of value — and we look forward to the upcoming launch of their platform.”
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