Bitbond becomes the first regulated company in Blockchain to announce STO with a security prospectus

Bitbond, a German company based in Blockchain, announced that it had received a green signal from regulators allowing it to issue security tokens (STOs). As a result, BaFin, the German Federal Financial Supervisory Authority, has approved Bitbond's STB plea under the German Banking Act.

Tokenized bonds approved by BaFin

Bitbond, the blockchain-based lending company, is the first German company to be regulated by BaFin and to follow transparent rules. According to the statement, STO Bitbond realizes an issue volume of 100 million euros. In addition, private investors can also participate in the STO.

In an announcement, Radoslav Albrecht, founder and CEO of Bitbond, remarked that:

"We are the first regulated blockchain company to set new standards. It is important for us to show investors who trust our platform that we are acting under transparent rules.

Bitbond says that investor interest is drastically changing the behavior of structured tokens as securities. These Bitbond security tokens are issued on the Stellar blockchain. Those who wish to invest in Bitbond's STO can direct their investments in the Euro, Stellar Lights (XLM), Bitcoin (BTC) or Ethereum (ETH), but ensure that the company will provide returns in XLM.

In addition, the press release admires the new investment product proposed by Bitbond and adds that "it is innovation". Following the official announcement, it proposes an annual interest rate of 4% on invested capital (1% / quarter). In addition to the annual interest rate of four percent, the bond also carries the variable bonus each year. Nevertheless, the duration of the obligation counts for 10 years.

Bitbond expects to mobilize around 1 billion euros in loans by year by 2022. Similarly, Albrecht CEO will express in an interview with local Handelsblatt media. He states that if the company can raise between 3 and 5 million euros, the STO can increase these figures up to 100 million euros.

Commenting on BaFin's decision, Philipp Sandner, head of the Blockchain Center at the Frankfurt School of Finance, explains the importance of BaFin's decision on cryptography. He says;

Supervision acts without obstruction: ordinary projects are approved, problems are avoided.

German local media also revealed that regulators still had three more "outstanding prospectus reviews" – which was confirmed at an event organized by Thomas Eufinger, head of BaFin's prospectus examination department.

What do you think about BaFin's approval of Bitbond's advocacy with the STO? Share your opinion with us.

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Bitbond becomes the first regulated company in Blockchain to announce STO with a security prospectus

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Bitbond, a German company based in Blockchain, announced that it had received a green signal from regulators allowing it to issue security tokens (STOs). As a result, BaFin, the German Federal Financial Supervisory Authority, has approved Bitbond's STB plea under the German Banking Act.

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