In just twelve hours March 2019/Update July 2019 – Starting signal for a new era: BaFin has approved the first German Security Token Offering (STO). Bitbond Finance GmbH, Berlin, receives the first applause. Germany’s first Security Token Offering (STO) will thus be the first loan brokerage on a crypto currency basis for SMEs!
According to the prospectus it is a “token-based bond”. The matching security token is called Bitbond1, BB1 for short. A BB1 has the equivalent value of one euro; the issue volume is capped at 100 million euros. As realistic target 3.5 million euros were named.
The first investment round started on 11 March 2019. In only twelve hours the first million euros were achieved. As befits the case, crypto payments are also possible in addition to euros. Interest and repayments are – according to the current plan – only made via Stellar Lumens. The interest rate is 4 percent p.a., plus a variable bonus from Bitbond’s net profit. The whole thing has a term of ten years.
First German STO: Shares are based on security tokens
Sounds like a normal, well thought-out bond, doesn’t it? Well, it is – except for the fact that the shares are based on security tokens!
The lawyer Eric Romba, who was involved in the preparation of the prospectus of the first German STO, comments as follows: “The product offered by Bitbond Finance GmbH of a tokenised and prospected bond is an innovation. The structure makes it possible to issue bonds in future with documentation that conforms to regulatory requirements, but without intermediaries and without a centrally held certificate. In addition, the door opens to making previously illiquid assets liquid via block-chain tokens.”
Update 10. July 2019:
Bitbond’s STO closed on July 8, 2019. Although the financing target of 3.5 million euros was missed, a result of over 2.1 million euros for a completely new asset is still more than remarkable. And also two further information of Bitbond convince:
- The investors of the first German STO come from 87 different countries. This proves the global power of the vehicle.
- Bitbond also speaks of over 1,000 press releases on the STO. Being a first mover is clearly reflected in public perception.