On March 11th Bitbond will launch its security token offering. Last month Germany’s financial regulator, BaFin, 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.
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. ‘
For its upcoming STO offering Bitbond will be partnering with solarisBank, the Berlin-based technology platform with a banking license. Bitbond accepts bank account wires as well as the cryptocurrencies Stellar Lumens, Bitcoin and Ether as a means of payment for the tokenized bond offering.
Bitbond is partnering with solarisBank to leverage their Blockchain Factory. The partnership will ensure Bitbond will have a secure German bank by its side during the Bitbond STO. Over the next 3 months, solarisBank’s Blockchain Factory will be working closely with Bitbond to provide all Bitbond STO investors with individual IBAN numbers to deposit their investment. Chief commercial officer of solarisBank, Jörg Diewald stated “We are excited to be providing our support and expertise during such a groundbreaking project. Innovation in the financial space is key to growth and solarisBank is contributing to this growth by facilitating projects like the Bitbond STO”.
This will enable Bitbond to seamlessly allocate payments to investors. Additionally, Bitbond can access their solarisBank account via an API connection, meaning that payments can be allocated in real time. The API connection and individual IBAN numbers will, therefore, play a crucial role in tracking fiat payments during the Bitbond STO.
Founder and CEO of Bitbond Radoslav Albrecht said “We are delighted to be working so closely with another innovator in the financial industry. This partnership will ensure both crypto & fiat STO investors will be equally tracked and can invest in the Bitbond STO in a secure manner.”