Oct 16, 2024

Bitpanda, the leading platform for digital assets in Europe, has reached a new milestone: private investors can now invest in security tokens for the first time via the platform. This groundbreaking development brings the tokenized version of classic financial assets such as stocks, commodities and bonds to the blockchain, creating a new asset class that could revolutionize the European financial market. What are security tokens? Security tokens are digital securities that represent shares in real assets such as stocks, commodities or bonds. These tokens are issued and traded on the blockchain, which means that they are protected by the security mechanisms of this technology. Each token represents the ownership or rights to an underlying asset and is subject to the same legal regulations as traditional securities. This form of investment is an innovative step into the future of financial markets, as it combines the transparency and security of blockchain with the regulation and reliability of classic financial instruments. Steelcoin: The first security token on Bitpanda The first security token available on the Bitpanda platform is Steelcoin, which was founded in Vienna in 2022. Steelcoin offers investors the opportunity to participate in the price development of selected steel products. The token is based on the Ethereum blockchain and was developed in cooperation with the Austrian steel trading group Frankstahl. S teel, one of the most traded commodities in the world, has not yet received the same attention as an investment opportunity as, for example, gold or iron ore. With Steelcoin, investors now have the chance to invest in an often underestimated raw material that nevertheless makes a significant contribution to building the modern world. Lukas Enzersdorfer-Konrad, Deputy CEO of Bitpanda, said: “Tokenization is the future of investing and we want to play an active role in shaping this future. Security tokens represent an innovative asset class that transfers traditional financial assets to the blockchain. We firmly believe that private investors should also have access to this form of investment.” Benefits for investors and B2B partners The introduction of security tokens at Bitpanda offers investors numerous advantages. Private investors now have the opportunity to invest in real assets that traditionally belong to more expensive or difficult to access asset classes, such as real estate or commodities. The concept of so-called “fractional ownership” also allows smaller investment amounts to be used to invest in these asset classes. This enables greater diversification of one’s own portfolio. Another important aspect is that not only private investors benefit from this development, but also Bitpanda’s B2B partners. Banks, fintechs and crypto companies can now offer their end customers access to security tokens via Bitpanda Technology Solutions. This expands the offering for institutions that want to offer their customers innovative and modern investment opportunities. Bitpanda as a pioneer in the European financial market With the introduction of security tokens, Bitpanda is positioning itself as a pioneer in the European financial market. Issuers who want to issue their digital securities now have a reliable and broad distribution channel via the platform. According to Bitpanda, Steelcoin will only be the beginning, as more security tokens are to be listed on the platform in the future. Issuers of security tokens can contact Bitpanda directly to make their digital assets available on the platform. __ DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. 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