A Berlin-based crowdfunding company Bitbond has released a prospectus approved by German regulator BaFin to raise funds by issuing a security token bond on the Stellar blockchain, without a depositary bank, without certificates or coupons and intermediaries.
Differently from what happens with traditional bonds, no commission/premium/agio will be charged to subscribers. Also, the size of this STO is considerable, with an ambitious hard-cap of €100M.
The German move is important for the industry. It sends a clear signal that Germany is now leading the STO race and is ready to take any business and tokenize it.
And with the uncertainties of Brexit , which may penalize London’s financial hub in the short term , the Germans might even be able to attract potential STOs from other EU countries. In the end the financial infrastructure in Frankfurt is top notch, Berlin is a top tech and crypto hub with plenty of very experienced crypto consultants and legal advisors and the market for potential STO candidates among German SMEs is simply the biggest in Europe. So it’s all there for the German STO market to prosper and grow.