On March 11th, cryptocurrency lending platform Bitbond will launch Germany’s inaugural security token offering, or STO, highlighting how regulators in the economic European powerhouse have paved the way for such token sales to make early inroads toward the mainstream in the nation.
That Monday, the Berlin-based firm is releasing its Bitbond Token (BB1) to global investors, with only U.S. and Canadian users barred from participating. The BB1 token offering, whose prospectus is fully compliant with European Union prospectus laws, was approved for release last month by the Bundesanstalt für Finanzdienstleistungsaufsicht, or BaFin, Germany’s top financial watchdog body.
The STO is being built not as an Ethereum token or a Tezos token but rather via Stellar, the blockchain project that underpins the lumens (XLM) cryptocurrency.
“In order to provide the best possible experience, Germany’s first security token will be issued on the Stellar blockchain,” Bitbond said on their BB1 landing page. “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 tiered, with prices starting at €0.7 EUR and going as high as €1 per token. The BB1 issue volume is set to be capped at €100 million. Investors can participate in the STO using bitcoin, ether, lumens, or euros.
The tokens will give its holders’ specific rights to Bitbond dividends, as the firm explained in its BB1 marketing materials:
“You will receive a fixed annual coupon of 4% paid out on a quarterly basis (1% every three months) as well as variable coupon based on a share of the profits generated by Bitbond Finance (60% of pre-tax profits) throughout the entire maturity of the token (10 years). The variable coupon is based on the investment decisions of Bitbond Finance and the performance of the underlying loan portfolio and therefore may vary.”
The company has said it currently facilitates more than $1 million USD in lending every month.
Bitbond founder Radoslav Albrecht on the cover photo.