Bitpanda, a European cryptocurrency platform, has 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.

According to the company's press release from Oct. 10 shared with CryptoNews, Steelcoin is a “regulated, transferable security” under the EU Prospectus Regulation, tracking the value of selected steel products.

Steel on the Ethereum Blockchain

According to the press release, the launch of Steelcoin aligns with Bitpanda’s long-standing vision to provide a platform for innovative crypto projects. As early as 2019, the company expressed its intention to create a “launchpad” where projects could raise funds through Initial Exchange Offerings (IEOs).

To ensure the long-term value and redeemability of Steelcoin, its weight is subject to 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, even far into the future.

Marcel Javor, CEO of Steelcoin, adds:

“Steel is one of the most traded commodities worldwide, but unlike gold or iron ore, steel remains an underestimated investment opportunity. With Steelcoin, we are transforming steel into a digital asset and making it accessible to everyone."

Bitpanda's Global Growth

With the launch of security tokens on its platform, Bitpanda allows investors to diversify their portfolios with fractional ownership of assets such as real estate and commodities.

In addition, Bitpanda’s B2B partners can now offer their clients access to this asset class, as Steelcoin is just the first of many security tokens to be listed on the platform in the future, according to Bitpanda.

Earlier this year, in January, Bitpanda also launched Bitpanda Wealth, a cryptocurrency trading platform designed to meet the growing demand for institutional crypto services in Europe and target high-net-worth individuals, family offices, external asset managers, and corporate treasuries.

In June, Bitpanda partnered with Deutsche Bank to enable real-time inbound and outbound payments for German crypto traders. By leveraging Deutsche Bank’s API-based account solution, Bitpanda will gain access to German International Bank Account Numbers (IBANs), facilitating secure and swift international transfers.

The post Bitpanda Offers EU-Regulated Security Token To Retail Investors appeared first on Cryptonews.