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, founded in Vienna, Austria, in 2022. Steelcoin is described as a “regulated, transferable security” under the EU Prospectus Regulation, tracking the value of selected steel products. This move aligns with Bitpanda’s vision to provide a platform for innovative crypto projects. The company has been aiming to create a launchpad for projects to raise funds through Initial Exchange Offerings (IEOs) since 2019.
Steelcoin is a security token that represents ownership of tangible assets on the Ethereum blockchain. It was developed by the subsidiary of Austrian steel trading group Frankstahl, SC STEELCOIN GmbH, and represents 1,721.28 kilograms of steel. This innovative approach makes Steelcoin a transferable security under European law with its value directly linked to the price of steel. To ensure the long-term value and redeemability of the token, its weight is subject to a gradual reduction of 3% per year, accounting for potential risks and costs associated with the underlying asset.
The launch of security tokens on the Bitpanda platform allows investors to diversify their portfolios with fractional ownership of assets like real estate and commodities. The introduction of Steelcoin is just the beginning, with plans to list more security tokens on the platform in the future. This move opens up opportunities for Bitpanda’s B2B partners to offer their clients access to this new asset class. Earlier this year, Bitpanda also launched Bitpanda Wealth, a cryptocurrency trading platform catering to institutional clients in Europe such as high-net-worth individuals, family offices, and corporate treasuries.
In January, Bitpanda partnered with Deutsche Bank to enable real-time inbound and outbound payments for German crypto traders. By utilizing Deutsche Bank’s API-based account solution, Bitpanda will have access to German International Bank Account Numbers (IBANs), facilitating secure international transfers. Moreover, Bitpanda’s expansion reaches beyond Europe with the offering of 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 in Finland have brought Bitpanda’s technology to the MENA region and Scandinavia.
Overall, the introduction of Steelcoin as the first security token on the Bitpanda platform marks a significant milestone in the world of cryptocurrency investments. This move highlights Bitpanda’s commitment to innovation and providing its users with access to new and diverse investment opportunities. As the platform continues to expand and list more security tokens in the future, investors can look forward to further diversifying their portfolios and exploring the potential of this emerging asset class. With a strong foundation in the industry, Bitpanda remains a trusted source for digital asset investments, offering a range of products and services tailored to both retail and institutional clients.
