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 platform is Steelcoin, founded in Vienna, Austria, in 2022. Steelcoin is a regulated, transferable security under EU Prospectus Regulation, tracking the value of selected steel products. This initiative aligns with Bitpanda’s vision to provide a platform for innovative crypto projects, as expressed as early as 2019 when they mentioned creating a launchpad for projects to raise funds through Initial Exchange Offerings (IEOs). Steelcoin, developed by Austrian steel trading group Frankstahl, represents 1,721.28 kilograms of steel on the Ethereum blockchain, making it a transferable security under European law.
Security tokens, a new asset class that digitizes traditional financial assets like stocks, commodities, or bonds, 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. As digital securities, security tokens are subject to strict legal regulations and securities laws. Steelcoin’s value is directly linked to the price of steel, with its weight gradually reducing by 3% per year to account for potential risks and costs associated with the underlying asset. This maintenance of a sustainable weight ensures the long-term value and redeemability of Steelcoin, making it accessible to a wider audience and transforming steel into a digital asset.
Bitpanda’s introduction of security tokens on its platform opens up opportunities for investors to diversify their portfolios with fractional ownership of assets like real estate and commodities. The addition of security tokens also allows Bitpanda’s B2B partners to offer their clients access to this asset class. Steelcoin is just the first of many security tokens to be listed on the platform in the future, signaling Bitpanda’s commitment to expanding its range of investment opportunities for its users. Earlier in 2024, Bitpanda 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 a move to enhance the user experience for German crypto traders, Bitpanda partnered with Deutsche Bank earlier this year to enable real-time inbound and outbound payments. Leveraging Deutsche Bank’s API-based account solution, Bitpanda now has access to German International Bank Account Numbers (IBANs) for secure and swift international transfers. Furthermore, Bitpanda is expanding its reach beyond Europe by offering its cloud-based infrastructure, Bitpanda Technology Solutions (BTS), to other banks and cryptocurrency brokers. Partnerships with institutions like the National Bank of Ras Al Khaimah and Coinmotion have brought Bitpanda’s technology to the MENA region and Scandinavia, demonstrating the company’s global ambitions and commitment to providing innovative financial solutions.
The CEO of Steelcoin, Marcel Javor, emphasizes the potential of steel as an investment opportunity, highlighting Steelcoin’s role in making steel accessible to a wider audience. By transforming steel into a digital asset through Steelcoin, individuals can now participate in the steel market in a more accessible and innovative way. As one of the most traded commodities globally, steel is underscored as an investment opportunity ripe for exploration. Steelcoin’s unique approach of representing tangible assets on the Ethereum blockchain exemplifies the growing intersection of traditional industries with blockchain technology, fostering new investment avenues and opportunities for investors to engage with novel asset classes.
The launch of Steelcoin on Bitpanda’s platform represents a milestone in the company’s journey to provide cutting-edge investment opportunities for its users. Bitpanda’s strategic partnerships, such as its collaboration with Deutsche Bank and expansion into new regions like the MENA region and Scandinavia, underscore its commitment to innovation and growth. By introducing security tokens and facilitating access to a diverse range of assets, Bitpanda is establishing itself as a key player in the digital asset space, catering to both retail and institutional investors looking to explore new investment opportunities in the evolving blockchain and cryptocurrency landscape.
