Bitbond Small Business Loan Company Gets Legal Approval to Launch Security Token Offering (STO)


Small Scale Loan provider Bitbond is raising €3.5 million up in a Security Token Offering (STO) to help SMEs in Asia. This denotes the first STO to be endorsed by German administrative body BaFin.

As a private venture involved in loan provision, Bitbond boasts of facilitating business loans worth over €13 million to support SMEs with the use of eCommerce platforms such as Amazon, eBay, and Etsy.

The funds generated from the potential Security Token Offering will be invested in loans to aid the growth and expansion of SMEs and online retailers across Asia.

First Of It's Kind

Notably, the Bitbond STO happens to be the first STO in Germany to have its outline endorsed by BaFin- the country’s top financial regulatory body- as it looks to encourage crypto adoption.

The platform already bolsters more than 150,000 clients in 80 nations utilizing blockchain innovation to encourage suitable cross-border settlements as well as machine-based learning for effective credit-scoring.

According to CEO and founder of Bitbond Radoslav Albrecht;

“We are still in the process of uncovering the potential of emerging technologies like blockchain and machine learning, so it’s exciting to be at the forefront of this developing space.”

What The First Regulated STO In Germany Could Mean

It is impressive and applaudable that the German supervisory body is ready for advanced securities contributions. Undoubtedly, blockchain innovation could serve as a credible source of capital for independent businesses and small ventures across the globe. Albrecht also clarified on the conventional monetary framework as he was quoted saying:

“The traditional financial system is acting as an obstacle for countless entrepreneurs across the world. With this STO, we will continue to offer accessible loans to the small business that need them, so that they can grow and invest in their own communities in turn.”

Numerous organizations are already profiting the Bitbond platform. One of such is the case of Dr. Joemar Taganna, a bioengineer, who got a business loan from Bitbond to aid the launch of his software product development business; SciBiz. He enthused:

“It’s much easier to secure a Bitbond loan than more traditional routes to seed finance. There’s a lot less hassle, which makes it quicker to launch a business and achieve sustainable growth.”

This STO will keep running until the 8th of July and is available to financial specialists around the globe with the exception of the United States.

Could This Be A False Start?

Although many industry specialists already predicted the approval and endorsement of a Regulation A+ STO, the Bitbond STO– being the first government-authorized STO in Germany- just about shows the level of advancement being made in the country and Europe at large, although the U.S. appears to keep hauling its heels.

A Regulation A+ will be an extraordinary achievement for the cryptocurrency and blockchain space, however, the need for an ‘Exchange Agent’ seems to be a noteworthy hindrance that restricts crypto firms in the U.S making such significant moves.

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