Vienna-based cryptocurrency broker Bitpanda is launching a new blockchain network aimed at introducing tokenized assets into Europe’s regulated financial system, as institutions seek to move toward permanent markets.
The company said Wednesday that its “Vision Chain,” built with the Vision Web3 Foundation and Optimism will provide infrastructure for banks and fintechs to issue and settle tokenized assets in accordance with EU rules such as MiCA and MiFID II.
The network uses euro-denominated stablecoins for transaction fees to avoid the volatility associated with typical crypto payments on public chains. It also leverages Optimism’s Ethereum-based infrastructure to handle settlement and scaling.
The move comes as global finance firms further engage in tokenization to improve market plumbing for around-the-clock trading. The technology is widely seen as a way to streamline the way assets are issued, traded and recorded, reducing reliance on fragmented legacy systems. This is a potentially huge market: tokenized assets could grow 53% annually, reaching $18.9 trillion by 2033 across all asset classes, according to a joint report from the Boston Consulting Group and Ripple.
The initiative reflects a broader race among financial companies. Rival digital brokerage Robinhood (HOOD) is currently testing its proprietary blockchain dubbed Robinhood Chain, designed specifically for trading tokenized stocks and connecting to decentralized finance (DeFi) applications. Wall Street giants such as Nasdaq and NYSE are also working on their blockchain platforms for tokenized securities, merging crypto rails with the same compliance and safeguards as traditional systems.
Bitpanda’s chain fits into the company’s broader strategy to bridge crypto rails and traditional finance, providing banks and financial institutions with blockchain plumbing to provide digital asset services to their clients.
“Tokenization is expected to redefine capital markets,” said Lukas Enzersdorfer-Konrad, CEO of Bitpanda, in a statement. “European financial institutions have been ready for this change for years, but the infrastructure is lacking.
“With Vision Chain, we are building a public blockchain designed around European regulatory standards, combining the openness of public networks with the reliability required by institutions,” he added.
Read more: Crypto broker Bitpanda bets on banks and tokenization to expand globally ahead of IPO plans
