Vienna-based crypto broker Bitpanda is launching a new blockchain network that aims to bring tokenized assets into Europe’s regulated financial system as institutions look to move toward always-on 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 under EU regulations such as MiCA and MiFID II.
The network uses compatible euro-denominated stablecoins for transaction fees to avoid the volatility associated with typical crypto payments on public chains. It also relies on Optimism’s Ethereum-based infrastructure to handle settlement and scaling.
The move comes as firms across global finance push deeper into tokenization to upgrade the market’s 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 potentially a massive market: tokenized assets could grow by 53% per year and reach $18.9 trillion by 2033 across asset classes, estimates a joint report by Boston Consulting Group and Ripple.
The initiative reflects a wider race among financial companies. Rival digital broker Robinhood (HOOD) is currently testing its proprietary blockchain called Robinhood Chain, built specifically for tokenized stock trading 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 security measures as traditional systems.
Bitpanda’s chain fits into the company’s broader strategy to bridge the gap between crypto rails and traditional finance, offering banks and financial institutions the blockchain plumbing to deliver digital asset services to their clients.
“Tokenization is expected to redefine the capital markets,” Lukas Enzersdorfer-Konrad, CEO of Bitpanda, said in a statement. “The European financial institutions have been ready for this shift for years, but the infrastructure has been lacking.
“With Vision Chain, we are building a public blockchain designed around Europe’s 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
