Bitbond Has Gone Ahead To Announce The STO With The Security Prospectus
The Bitbond, a blockchain technology company has just gone ahead to announce their very first Security Token Offering; this is the STO, this is with the securities prospectus that has been approved by the BaFin. Bitbond has been considered to be the first within Germany that has been able to issue the security token that is comprehensively regulated.
The Bitbond has so far been approved as being an asset broker, this is under the German Banking Act, this is for their lending business that is blockchain based, and it has also been the very first financial service institution of this type that has been served by the BaFin.
According to the CEO of Bitbond, Radoslav Albrecht they excited with the current move that they have gotten into as the trend that is taking place within the market is moving towards structured security.
“We are the first regulated blockchain company to set new standards. It is important for us to show the investors who trust our platform that we act according to transparent rules.”
Unlike the utility tokens that we have been accustomed to that tend to not give any rise to legal payment claims for the investor, the security tokens tend to be structured as securities; thus, this is able to regulate the investor's rights.
When we look at the case of the Bitbond, the investors will be able to participate in the eventual success of the company; this will be made possible through the interest claim. As a result, the company hopes with this in place the security tokens will be able to spread quickly. It will be able to enable both the professional and the private investors to be able to easily invest in the early stage companies, therefore, be able to provide the startup companies with easy access to the capital markets.
The Bitbond Token, which has been referred to as the BB1, has a nominal value which is of one euro; thus the interested investor within the market can purchase the token. With the tokens, it will enable the investors to go ahead and participate in the success of the company together with the loans that will have been brokered by the Bitbond.
The tokens have also been made to be tradeable and can quickly be sold and bought on the available crypto exchanges when the regulatory requirement is finally fulfilled.
The proceeds that will be gotten from the STO will be able to serve two purposes
1. Bitbond will be able to use it for their core business which is lending the small businesses that are within the market.
2. The second Bitbond will be to develop further its global lending platform, which includes the innovations and advancements within the payments together with the credit scoring area.