Blockchain-powered lender Bitbond to launch Germany’s first security token on 11 March

By Oliver Smith on Friday 1 March 2019

Savings and Investment

With a waiting list of STOs, Germany's financial regulator will be watching closely.

Blockchain-powered lender Bitbond to launch Germany’s first security token on 11 March
Image source: Radoslav Albrecht/Bitbond

Germany’s financial regulator, BaFin, last month gave the green light for blockchain-powered lender Bitbond to launch Germany’s first securities token offering (STO) with a prospectus.

Bitbond, which lends to small businesses using blockchain technology, says it’s looking to raise up to €100m from the token sale, which goes live on 11 March.

"We are the first regulated blockchain company to set new standards,” said Radoslav Albrecht (pictured), founder and CEO of Bitbond, who said the minimum raise would be €3m.

“It is important for us to show the investors who trust our platform that we act according to transparent rules.”

Unlike a utility token, Bitbond’s security token (BB1) will have no practical use, structured instead like a bond with investor’s receiving a 4% annual interest rate, a variable annual bonus and a 10-year redemption period after which Bitbond will repurchase for €1 per token.

Bitbond’s full prospectus can be found here.

The company already has made more than 3,200 loans to SMEs, lending out more than $15m, mainly to companies in the e-commerce sector.

Albrecht says the proceeds of the STO will be used for core business lending, as well as expanding Bitbond’s lending platform globally.

As there are currently three other STO applications being reviewed by BaFin, the regulator, and the German crypto industry, will no doubt be monitoring Bitbond’s sale on the 11th very closely.

Sign up for our newsletters

Your daily 7am download of all things alternative finance and fintech.

Fintech and alternative finance headlines with an exclusive Editor's Note each week. Delivered Monday at midday.

AltFi's new weekly US newsletter breaking down the ins and outs of America's burgeoning fintech sector. Delivered Monday 9am EST/ 6am PST.