Stellar Platform Selected by Germany-based wevest Digital AG for its ‘Upcoming Security Token Services’

Stellar Platform Selected by Germany-based wevest Digital AG for its ‘Upcoming Security Token Services’

As of mid-April 2019, Berlin-based Fintech enterprise wevest Digital AG has chosen the Stellar network for its future security token services. The move aligns with wevest’s plans to develop a single platform with the essential domains of an investment bank.


wevest Chooses Stellar for Security Tokens — Explained

The Stellar Platform is primarily known for the facilitation of cross-border payments. Some have argued however, that the simplicity, scalability, security, and compliance make the Stellar network a prime fit for security tokens.

wevest has now been the latest to join that line of thought. Currently, wevest offers digital investment banking services for small and medium-sized enterprises (SMEs). The company has the mission of combining “the essential domains of an investment bank” into one single platform, including the areas of wealth management, corporate finance, and security token offerings.

The Fintech company will now leverage Stellar to actualize that mission.

According to Didier Goepfert, head of product at wevest,

“Stellar was an obvious choice — it combines simplicity, speed, cost efficiency and met all our requirements. 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.”

The use of distributed ledger technology (DLT) is anticipated to bring serious benefits to the legacy system of traditional financial securities.

wevest will utilize Stellar’s smart contract functionality to integrate such benefits into the German financial infrastructure.

Boris Reznikov— director of partnerships at Stellar.org— says Stellar is indeed a prime fit for the developing wevest platform:

“We’re thrilled for wevest to become the latest German fintech to join the Stellar ecosystem. 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.”

The regulatory situation in Germany has seemed to be stringent but open to those who wish to utilize security tokens in a compliant manner.

In February, German securities watchdog BaFin approved the tokenization of bonds by BitBond.

Last December, Neufund— also based in Berlin— raised €3 million through a tokenized equity offering.

What do you think of wevest choosing Stellar? Will the Stellar Platform become a future hub of security token offerings? We want to know what you think in the comments section below.


Image courtesy of Stellar.

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