BaFin Approves Blockchain Real Estate Bond Issuer to Operate in Germany


BaFin, a German financial services regulatory watchdog, has permitted a Blockchain-powered bond issuance firm to operate in the country. The Berlin-based, Fundament Group-owned firm with branches in Hamburg, Rostock, Fulda and Jena, is now free to transact legally in Germany.

Fundament Group, the approved firm’s parent company, majors in tokenization of assets and has interests in the real estate marketplace. The bond issuance entity, however, has backed its Blockchain bonds with Ethereum as well as a host of assets spread across Germany. In total, its issuance volume is €250 million.

Incidentally, this is the first Blockchain-based company to be given the go-ahead to operate in Germany. It, therefore, is an exciting development for the German Financial Market Supervisory Authority as well as the country’s crypto community.

Makes It Easy To Sell Property Across Germany

The business idea executed by Fundament Group is quite fascinating. Ideally, an investor who splurges their funds in the bonds gets a right or share certificate, issued digitally as a token. The digital token is then made easy to be traded on a secondary market by its holder, mostly without any assistance from a 3rd party.

Upon getting the approval, the company’s co-founder, Florian Glatz, was elated. He was excited that their firm was the first to get the green light from the German Financial Market Authority and operate. According to him, the Blockchain-powered real estate bond issuance firm would launch the real estate security token sale for their highly demanded assets.

Fundament Group isn’t the only firm working hard to bring the Blockchain technology into the heart of the real estate holdings sector. The whole practice has, however, left many in the crypto industry arguing that tokenizing the assets would not suit all asset types.

The argument behind this assertion is the fact that in real estate, asset classes vary significantly. Furthermore, the property industry is traditionally unbreakable and thus, hard to trade. However, by tokenizing it in form of digital bonds, realtors will find them a lot easier to dispose of.

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