Bitbond Closes BaFin Approved Security Token Offering: Investors from 87 Different Countries Participated

Bitbond’s security token offering (STO) closed yesterday raising over €2.1 million. The Bitbond Token was the first issuer to receive approval of a prospectus by Germany’s security regulator – BaFin. The STO was opened to the public in March of 2019. Bitbond has been regulated by BaFin since 2016.

In a tweet, Bitbond shared some statistics of the security offering:

  • Investors from 87 different countries participated in the STO (US and Canada investors were not allowed)
  • Over €32,000 was earned by affiliates helping to promote the STO
  • Over 1000 news article covered the issuance of the digital security

The debt based security, or BB1 , recently received an “international securities identification number” (ISIN) which makes the security identifiable worldwide and while aligning with all other securities, facilitating clearing, settlement, and custody.

The BBI holds a coupon value of 4% per annum but also a targeted return of 8% as the security will pay out 60% of the company’s profits to holders of the token. Bitbond provided a calculator to display hypothetical returns of BB1 to better inform potential investors. Token holders may expect to receive their first payout on October 1, 2019. While the token has a €100 million hard cap the security does not have a soft cap. According to a post on Telegram, the exact tally will take a few days as bank transfers are confirmed.

The token price was set at €1 but investors received a discount to the face value. Investors could participate by purchasing the security with Euros, Bitcoin, Ethereum or Stellar. BB1 was issued on the Stellar blockchain. The security will be tradable.

Bitbond Finance GmbH is a global online lender that provides small business loans in as little as 30 minutes. Founded in 2013, Bitbond is now originating over $1 million in loans each month accepting both institutional and retail investors.  Many of the loans are smaller in nature targeting operators on marketplaces.


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