BaFin approves Germany’s first security token offering (STO)

The credit company Bitbond is allowed to carry out Germany’s first security token offering (STO). The sale of tokenized bonds by Bitbond received the highest regulatory blessing from the German Federal Financial Supervisory Authority (BaFin). The STO has an issue volume of 100 million euros.

Bitbond may hold Germany’s first security token offering (STO). This was announced by the crypto start-up on February 15 on its website. The Federal Financial Supervisory Authority has approved the securities prospectus of the company. Thus, it is now also open to private investors to participate in the STO.

BB1: Token-based bond

The first virtual round of investment will start on March 11. The security token offered is called Bitbond1 (BB1) and, according to the prospectus, is a “token-based bond”. A BB1 should have the equivalent of one euro. The issue volume amounts to 100 million euros. Whoever participates in the first round of financing receives a discount of 30 percent.

Lawyer Eric Romba of the law firm lindenpartners was responsible for preparing the prospectus. In a press release available to BTC-ECHO, Romba praises the innovative power of the new investment product:

    “The product of a tokenized and prospected bond offered by Bitbond Finance GmbH is an innovation that allows bonds to be issued in the future with regulatory compliant documentation, but without intermediary intermediation and without a centrally held certificate to liquidate previously illiquid assets via blockchain tokens. ”

Eric Romba, lindenpartners

Return in XLM

The term of the bond is ten years. Bitbond promises an annual interest rate of four percent (one percent per quarter) on capital invested. In addition, there is a variable bonus that spans 60 percent of Bitbond Finance’s net profit. The brochure states:

    “The variable interest rate for an interest period is the percentage resulting from the fact that 60 percent of the pre-tax profit (excluding variable interest), if any, is consistent with the Issuer’s approved and audited annual financial statements for the variable coupon interest payment date is divided by the total nominal value of the outstanding token-based debt securities. “

Anyone who wants to invest can do so in Euro, Stellar Lumens (XLM), Bitcoin (BTC) or Ether (ETH). The repayment and due interest payments by Bitbond are carried out in the form of XLM.

Bitbond already licensed

The core business of Bitbond is lending to businesses and the self-employed. The processing of loans is done via cryptocurrencies. The start-up, founded in 2013, claims to have issued more than $ 15 million in loans so far. Through the STO, Bitbond can now hope for fresh liquidity through private investors. Already a year ago, Bitbond’s CEO Radoslav Albrecht was optimistic about BTC-ECHO regarding the regulatory landscape in Germany – no wonder: Bitbond is the only crypto start-up with a BaFin license.

” There are no serious issues, but it is always a trio of fundraising to expand our capacity, fundraising on the leverage side to fund more loans and recruiting or finding the right people. These are normal operating processes. I look very positively into the future.”

With BaFin’s blessing, the root note for this triad is tuned.