Bitpanda, a European cryptocurrency platform, has recently introduced security tokens as a new investment opportunity for its retail investors. The first security token available on the Bitpanda platform is Steelcoin, which was founded in Vienna, Austria, in 2022. Steelcoin is a regulated, transferable security under the EU Prospectus Regulation, tracking the value of selected steel products. This move highlights Bitpanda’s commitment to providing innovative crypto projects with a platform to thrive, aligning with its vision to create a launchpad for projects to raise funds through Initial Exchange Offerings (IEOs).
Security tokens represent a new asset class that digitizes traditional financial assets like stocks, commodities, or bonds, and are issued and traded on a blockchain. Each token represents ownership or rights in an underlying asset and is protected by the security mechanisms of blockchain technology. Steelcoin, specifically, is a project from Austrian steel trading group Frankstahl, with its subsidiary, SC STEELCOIN GmbH, developing a token that represents 1,721.28 kilograms of steel. This unique approach makes Steelcoin a transferable security under European law on the Ethereum blockchain, with its value directly linked to the price of steel.
To ensure the long-term value and redeemability of Steelcoin, its weight undergoes a gradual reduction of 3% per year. This built-in mechanism helps to account for potential risks and costs associated with the underlying asset, steel. By maintaining a sustainable weight, Steelcoin can be redeemed at any time in the future. Marcel Javor, CEO of Steelcoin, emphasizes the transformative potential of Steelcoin, stating that steel, despite being one of the most traded commodities worldwide, remains an underestimated investment opportunity. With Steelcoin, the project aims to make steel accessible to everyone by transforming it into a digital asset.
With the launch of security tokens on its platform, Bitpanda enables investors to diversify their portfolios with fractional ownership of assets such as real estate and commodities. Bitpanda’s B2B partners can now offer their clients access to this asset class, with Steelcoin being just the beginning of many security tokens to be listed on the platform in the future. Earlier this year, Bitpanda also introduced Bitpanda Wealth, a cryptocurrency trading platform tailored to meet the growing demand for institutional crypto services in Europe, targeting high-net-worth individuals, family offices, external asset managers, and corporate treasuries.
Furthermore, Bitpanda expanded its global reach by partnering with Deutsche Bank to facilitate real-time inbound and outbound payments for German crypto traders. Leveraging Deutsche Bank’s API-based account solution, Bitpanda gained access to German International Bank Account Numbers (IBANs), enabling secure and swift international transfers. The company also extended its services beyond Europe by offering its cloud-based infrastructure, Bitpanda Technology Solutions (BTS), to other banks and cryptocurrency brokers. Partnerships with the National Bank of Ras Al Khaimah (RAKBANK) in the UAE and Coinmotion, a crypto broker in Finland, allowed Bitpanda to bring its technology to the MENA region and Scandinavia, further solidifying its presence in the global cryptocurrency market.
