This week, blockchain-centred lending platform Bitbond completed the first regulatory-approved Security Token Offering (STO) in Germany raising over 2.1 million Euros from investors located in 87 different countries.
With their prospectus already given the go-ahead by German financial regulator BaFin, the Bitbond Token (BB1) is now also the first crypto token to receive an international securities identification number (ISIN) which is used to identify securities worldwide and makes the token more attractive to institutional investors.
Connecting Borrowers with Investors
Founded in 2013, Bitbond Finance GmbH are a global online lender who specialise in providing small business loans by leveraging blockchain technology to connect borrowers in need of working capital with both individual and institutional investors.
The BB1 token – which has a face value of 1 Euro each and was purchasable with Bitcoin (BTC), Ethereum (ETH), Stellar (XLM) as well as the Euro – was issued on the Stellar blockchain.
Each token offers a coupon value of 4% per annum but has a higher targeted return as in addition the holders will receive a 60% share of the pre-tax company profits of Bitbond Finance over the 10 year life of the token. The first payout is scheduled for the beginning of October this year.
The token will be tradable through the Stellar Decentralised Exchange and has also attracted the attention of the Gibraltar Stock Exchange (GSX), one the world’s first stock exchanges to offer the listing of digital debt and fund securities on the blockchain through their STACS network, who have already signalled close collaboration with the project.
