On March 11th, the platform dedicated to cryptocurrency lending, Bitbond, is making headlines. Bitbond will launch Germany’s inaugural security token offering, or STO The financial landscape in Europe has evolved, allowing Germany to be at the forefront of legalizing token sales, thanks to the new regulatory framework.
This coming Monday, the Berlin-centric Bitbond will offer its Bitbond Token (BB1) to investors globally, though participants in the U.S. and Canada will not have access. With full compliance with the EU prospectus regulations, the prospectus received approval from BaFin, Germany's premier financial regulatory authority, just last month.
The STO is being built not as an Ethereum token or a Tezos token but rather via Stellar Representing the blockchain that forms the foundation of the project, lumens (XLM) cryptocurrency.
To deliver an unparalleled user experience, Bitbond made a conscious decision to release Germany's first-ever security token using the Stellar blockchain. They tout its impressive 1,000 transactions per second, minimal transaction fees, integrated decentralized exchange, and extensive network of partners as driving forces behind this choice.
Token Sale Details
The token distribution is planned in levels, with the value commencing from €0.7 EUR and potentially reaching up to €1 per token. With a ceiling of €100 million for the BB1 offering, participants can engage using bitcoin, ether, lumens, or euros.
Token holders are entitled to receive Bitbond dividends, as outlined in their promotional content for BB1:
You'll be rewarded with a steady yearly return of 4% paid quarterly (1% every three months) plus a variable dividend that reflects 60% of Bitbond Finance's pre-tax profits for the token's duration, which spans a decade. This variable rate is dependent on Bitbond Finance's investment choices and the performance outcomes of their underlying loan portfolio, leading to fluctuations.
Over a million dollars in loans are facilitated monthly through Bitbond.
Bitbond Initiated Global Bitcoin Loans Back in 2018
SWIFT payments? Who needs them!
Bitbond took an industry lead last spring as the first to enable bitcoin-facilitated global credit transfers.
In a May 2018 interview with Reuters, Bitbond's founder Radoslav Albrecht highlighted how bitcoin surpasses traditional payment methods, which can be costly due to exchange rates and time-consuming. Bitbond offers quick, hassle-free transactions regardless of customer location and with minimal fees.
Germany, as a prime player in Europe, has witnessed an overwhelming curiosity around cryptocurrencies recently.
Recently, Germany has been buzzing with energetic crypto undertakings.
Boerse Stuttgart Group, the second-largest stock exchange in Germany and ranked tenth in Europe, took steps last December to establish its cryptocurrency trading platform. Their trading application, known as Bison, rolled out in the first quarter of 2019.
Bitbond isn't the only entity in Germany favoring Stellar as of late. Just last month, SatoshiPay, which operates on Stellar, struck a deal to create a micropayment system for the renowned German media enterprise Axel Springer, backed by a $1 million USD grant from the Stellar Development Foundation.
The potential collaboration between Germany's current leadership and the European blockchain alliance, initiated by officials from Cyprus, France, Greece, Italy, Malta, Portugal, and Spain, could shape the European blockchain terrain for years to come if it materializes.
William M. Peaster, a seasoned writer and editor, delves deep into the nuances of Ethereum, Dai, and Bitcoin within the world of cryptocurrency. His works have been featured in publications like Blockonomi, Binance Academy, and Bitsonline. He continually explores smart contracts, DAOs, dApps, the Lightning Network, and is honing his skills in Solidity. Connect with him via Telegram at @wmpeaster.
