Bitpanda Pioneers Security Token Access for European Retail Investors With Steelcoin Listing

Bitpanda, a global leader in the digital assets space, will make security tokens available to retail investors – a first for the European market. The first security token is already available on the Bitpanda platform thanks to a partnership with Steelcoin, a regulated, transferable security under the EU Prospectus Regulation, that is linked to the value of specific steel products. 

What are security tokens?

Security tokens are digital representations of traditional financial assets, such as stocks, commodities, or bonds, issued and traded on the blockchain. Each token is a digital representation of ownership or rights to an underlying asset, secured by blockchain technology. Additionally, because the tokens are securities, they come with legal rights and are subject to strict legal frameworks and securities regulations. 

In making security tokens available on the platform, Bitpanda will work to set the standard for this new market and unlock even greater portfolio diversification for millions. 

Lukas Enzersdorfer-Konrad, Deputy CEO of Bitpanda:: “Tokenization is the future of investing and we want to shape that future. Security tokens are a truly innovative asset class that bring traditional financial assets onto the blockchain. We believe retail investors should be able to access them, so that’s what we’re going to do. It’s the perfect example of how technology from the crypto world can improve the financial system.” 

What is Steelcoin?

Steelcoin is the first security token to bring steel to the Ethereum blockchain and was developed in 2022 in Austria. The token has been designed to give investors an opportunity to participate in the price performance of specific steel products that are amongst those used to build the world around us. Steelcoin closely cooperates with the steel trading group Frankstahl, benefitting from decades of experience in the steel market.

This listing represents a new opportunity for Bitpanda users to invest in the commodities market through a regulated, blockchain-based asset.

Marcel Javor, CEO of Steelcoin commented: “Steel is one of the most traded commodities globally, yet unlike iron ore or gold, it remains an under-explored investment. With Steelcoin we are turning steel into a digital asset, making it accessible to everyone. By collaborating with Bitpanda, we are combining our strengths to offer a seamless and reliable way to invest in the steel market.”

Why is Bitpanda listing security tokens?

The introduction of security tokens to Bitpanda offers several key advantages for investors. Security tokens will enable access to a wide range of traditional financial assets in a digital format, making it easier for investors to diversify their portfolios. They also facilitate fractional ownership, allowing investors to benefit from high-value assets such as real estate or commodities at a fraction of the price. 

The new asset class will not only be available to Bitpanda’s retail customers, but also to the end users of Bitpanda’s B2B partners such as banks, fintechs and crypto companies via Bitpanda’s scalable digital asset infrastructure, Bitpanda Technology Solutions. From today, additional security tokens can now be easily integrated into Bitpanda’s offering and other security token issuers and projects can approach Bitpanda to inquire about listing.