Rabobank is thrilled to announce its collaborative venture with ABN AMRO, AssetBlock, and 2Tokens in their joint application for participation in the European Blockchain Sandbox (EBS). Their proposed use case has been granted approval by the EU First Group for the year 2023. The primary objective of this partnership is to legally explore innovative applications of tokenized financial security and the integration of stablecoins. Together, they aspire to bridge the gap between the physical world and the digital economy by tokenizing the Euro for utilization in tangible assets and transactions.
AssetBlock’s existing ‘Base Case’ presents an intriguing opportunity for individuals to invest in tracking stocks linked to renewable energy sources. Through the acquisition of tokens, investors gain co-ownership in solar, wind, or battery parks and are entitled to a share in the profits generated from these assets. Notably, the proof of ownership is represented by a non-fungible token (NFT), categorized as a security under MiFID II regulations. This classification ensures compliance and instills confidence in investors regarding the asset-backed nature of their holdings. Currently, the purchase, sale of NFTs, and dividend distribution are conducted using traditional Euros.
The core aim of this use case is to explore the applicability of Euros or bank deposit stablecoins within a sandbox environment. Both non-hosted and hosted wallets offered by banks will support transactions involving stablecoins, introducing new avenues of accessibility and convenience for investors. Furthermore, the possibility of tokenizing these assets as financial instruments (security tokens) is also within the scope of exploration. Acceptance into the EBS grants the opportunity to engage in secure discussions regarding pertinent regulatory matters with the EU and individual European Member State regulatory frameworks.
NFTs come equipped with embedded metadata, furnishing essential information about the underlying assets. Each NFT can be validated at the granular level, enabling investors to track production and access real-time pricing data. In adherence to regulatory prerequisites, all investors must complete the Know Your Customer (KYC) process during onboarding. Once whitelisted, investors can seamlessly procure NFTs using Euros, paving the way for the exploration of Euro-based stablecoin payments. Procedures implemented encompass the whitelisting of non-hosted or hosted wallets.
Alex Bosch, President of 2Tokens, expressed enthusiasm for the collaboration with ABN AMRO, AssetBlocks, and Rabobank in their pursuit of inclusion in the EBS. AssetBlocks, in particular, signifies a pivotal stride in democratizing investment opportunities and cultivating a decentralized economy. Leveraging blockchain technology opens up new horizons for investors while contributing to a sustainable future.
Meindert Jansberg, CEO of AssetBlocks, highlighted the significance of collaboration with ABN AMRO and Rabobank within the regulatory sandbox. The project endeavors to foster a shared understanding of tokenization within a fully compliant framework. This approach seeks to lay the groundwork for future tokenization and stablecoin-related projects, unlocking the full potential of tokenization for society.
Martijn Siebrand, Digital Assets at ABN AMRO, emphasized the interest in the EBS use case due to its potential to advance their digital asset capabilities and acquire insights into emerging topics and developments. Collaborating with regulators and industry partners is anticipated to yield valuable knowledge. Marjan van der Plas from the Blockchain Acceleration Lab at Rabobank acknowledged the existing regulatory ambiguity in the digital and tokenized asset sector. The EBS presents a unique opportunity for Rabobank and its partners to conduct safe experiments in collaboration with regulators, ultimately enhancing their collective comprehension of regulatory frameworks. Lessons derived from these joint experiments could chart the course for the evolution of digital and tokenized assets in the EU.
The European Blockchain Regulatory Sandbox serves as a platform to facilitate cross-border dialogues between regulators and supervisors, on one hand, and companies or public authorities, on the other. In these dialogues, developers of use cases can present their business propositions to receive regulatory guidance. The Sandbox endeavors to establish a pan-European framework for regulatory conversations, enhancing legal certainty for innovative blockchain solutions. Supported by the Digital Europe Program and aligned with the SME Strategy, the Sandbox is operational from 2023 to 2026 and is set to annually endorse 20 projects, encompassing public sector use cases, on the European Blockchain Services Infrastructure.