Vienna-based crypto broker BitPanda is launching a new blockchain network aimed at bringing tokenized assets into Europe’s regulated financial system, as institutions look to move to ever-changing markets.
The company said Wednesday that its “vision chain,” Vision Web 3, is built with the foundation and Optimism. It will provide the infrastructure for banks and fintechs to issue and settle tokenized assets under EU rules such as MiCA and MiFID II.
The network uses compliant euro-like stablecoins for transaction fees to avoid the volatility associated with common crypto payments on public chains. It also relies on Optimism’s Ethereum-based infrastructure to handle settlement and scaling.
The move comes as global financial firms move deeper into tokenization to upgrade market plumbing for round-the-clock trading. The technology is widely seen as a way to streamline how assets are issued, traded and recorded, reducing reliance on fragmented legacy systems. It’s a potentially huge market: Tokenized assets could grow by 53% a year, reaching $18.9 trillion across all asset classes by 2033, estimates a joint report from Boston Consulting Group and Ripple.
The move reflects a wider race among financial firms. Rival digital broker Robin Hood (HOOD) is currently testing its own proprietary blockchain called Robinhood Chain, which is specifically designed to connect to tokenized stock trading and decentralized finance (DeFi) applications. Wall Street behemoths like Nasdaq and NYSE also work on their blockchain platforms for tokenized securities, integrating cryptocurrencies with the same compliance and security as traditional systems.
BitPanda’s chain fits into the firms’ broader strategy to complement cryptocurrencies and traditional finance, offering banks and financial institutions blockchain plumbing to provide digital asset services to their customers.
“Tokenization is expected to redefine capital markets,” BitPanda CEO Lucas Enzerdoffer Konrad said in a statement. “European financial institutions have been ready for this change for years, but the infrastructure is missing.
“With VisionChain, we are building a public blockchain designed according to European regulatory standards, combining the openness of public networks with the need for trusted institutions,” he added.
Read more: Crypto broker BitPanda bets on banks and tokenization to expand globally ahead of IPO plans