The Berlin crypto start-up Bitbond has managed to have the planned STO approved by the German Federal Financial Supervisory Authority (BaFin). This makes them the first crypto company to not only own their own BaFin license, but also to carry out the first fully regulated crypto IPO in Germany. We have found out in a personal interview with Bitbond CEO Radoslav Albrecht why the security token corresponds to a bond, where it can be traded and what the targeted EUR 100 million should be used for.
QUESTION: Why did you issue a bond and not a share?
Radoslav Albrecht: That has something to do with our business model. We are a platform where small business owners and self-employed people can apply for working capital financing. As a platform, we grow, the more investment potential exists, that is, the more investors want to invest on our platform. So far, we are already doing well in terms of equity. However, we are always looking for new ways to expand our refinancing potential; and to that extent, a debt product is at first the most obvious. Because after we dealt with security tokens, we realized relatively quickly that a debt product fits best. Here there is a very good match of costs and coupon or profit share for the investors of the token.