wevest chooses Stellar for its security token services.
wevest Digital AG, a Berlin-based fintech company offering digital investment banking services for small and medium-sized enterprises (SMEs), will use the Stellar network for its upcoming Security Token services. After extensive diligence and testing, wevest has identified Stellar as the most suitable platform for its new product.
The incorporation of distributed ledger technology will allow wevest to strengthen its business by making the transfer of ownership and value more efficient and secure than previously possible. This is particularly relevant in a legacy-based financial system where transfer of ownership is costly and inefficient and where smaller companies have restricted access to the capital market due to their low investment volumes, which make them unattractive for traditional investment banks.
Stellar is built to address the inefficiencies of the financial services industry. While facilitating cross-border payments is commonly cited as the main application of the Stellar network, issuing digital assets, and facilitating their exchange, is another use case in which the Stellar network confers considerable advantage. The efficiencies Stellar provides will be instrumental in furthering wevest’s mission to help SMEs gain access to equity financing.
Stellar’s smart contract functions are restricted to use cases in the financial industry. This limitation has the benefit of making it less complex and less error-prone than other blockchains. The wevest team especially appreciated the ease of separating on-chain operations (e.g. ownership transfer) from off-chain operations (e.g. KYC & AML), a feature that is particularly important for regulators and wevest customer groups.
“Stellar was an obvious choice — it combines simplicity, speed, cost efficiency and met all our requirements. We are glad to join the Stellar ecosystem along with several other European companies, contributing to the adoption of blockchain-based products and providing SMEs with easy and efficient access to equity financing through electronic securities”, says Didier Goepfert, Head of Product at wevest.
“We’re thrilled for wevest to become the latest German fintech to join the Stellar ecosystem,” said Boris Reznikov, Director of Partnerships at Stellar.org. “wevest’s investment platform takes advantage of what the Stellar network does best — facilitating the efficient transfer and exchange of value — and we look forward to the upcoming launch of their platform.”
Digital corporate transactions and investments. The mission of wevest Digital AG is to combine through a single digital platform the essential domains of an investment bank, such as wealth management, corporate finance and the offering of security tokens. The focus of this platform is the mediation of corporate transactions between flexible, financially sound investors and corporations, belonging maximally to the SDAX. The investors of wevest Digital AG are beside Comvest Holding AG a number of well-known German entrepreneurs.
Stellar is a fast, scalable, and uniquely sustainable platform for decentralized financial products and services. It is both a cross-currency transaction system, designed specifically for international settlement, and a decentralized global marketplace for digital assets. Dozens of financial institutions and tens of thousands of individuals worldwide issue assets and settle payments on Stellar.
Didier Goepfert is currently Head of Product at the wevest Digital AG in Berlin and responsible for running the Blockchain Department.