Bitbond Prepares to be the First STO in Germany
Recently, Bitbond was approved by the Germany securities regulator BaFin to hold their security token offering. Now, the company is making the final preparations before their token sale. The STO will likely be Germany’s first and indicates a growing acceptance of digital securities in the finance center of Europe.
Bitbond’s STO is fast-approaching. Being approved last month by German regulators, the Berlin-based firm is preparing for their security token offering which is expected to start on March 11th. The digital bond issuer is making inroads in Germany for being the first major STO in the country which is just now warming up to the idea of digital securities.
The token on sale will be their own Bitbond token (BB1) which will be available to all global investors except those in the United States and Canada. Incredibly, the STO is one of the the first fully-compliant offerings in Europe gaining approval based on the European Union prospectus laws.
Also interesting is that BB1 will be built on the Stellar network which is different from most security tokens which are generally on Ethereum.
According to Bitbond, the reason they chose Stellar (XLM) is because of its fast transaction speeds and security. They said:
“With a processing capacity of over 1,000 transactions per second, transaction costs at a fraction of a cent, a built in decentralized exchange and a global network of active partners using the platform, Stellar is one of the most efficient blockchains for payment processing and token issuance.”
The token sale will be based on tiers. Starting prices will be €0.7 EUR and may go as high as €1 EUR per token. The token sale is capped at €100 million. Participants in the STO can purchase BB1 tokens using either BTC, ETH, XLM, or Euros.
Bitbond hopes to dominate the still-small crypto loans space. They already have functional Bitcoin-related loans, but digital bonds will help them to expand this concept towards further accessibility. Bitbond was the first company to facilitate credit using Bitcoin last year.
Bitbond is sure to attract more attention as their STO kicks off. The project is definitely one to look out for and will likely be mentioned as the catalyst for further German legislation on security tokens in the coming months.
What do you think of Bitbond’s STO? Will you participate? Do you think it will be successful? Let us know your thoughts in the comments.
Image courtesy of Bitbond.