Real Estate Crowdfunding Platform KlickOwn Completes First Security Token Offering in Partnership with Bitbond

KlickOwn, a real estate crowdfunding platform based in Germany, has completed its first security token offering (STO) for a property. As was reported last March, KlickOwn had listed a digital bond for a building located in Lüneburg, Germany – called “Historisches Lüneburg“. The digital security has raised its €1.5 million goal for a digital security that is anticipated to generate a 5% return annually. Investors could participate in the offering for as little as €10 – due, in part, to the low-cost blockchain-based securitization process.

The digital security was completed in partnership with BitBond, previously an online lending platform that is now providing security token technology. Bitbond completed Germany’s first security token offering receiving BaFin approval for their own tokenized bond in January 2019. Berlin-based Bitbond claims bank-grade technology.

Regarding the offering on KlickOwn, the Historisches Lüneburg security offering was said to be fully digitalized using blockchain technology. KlickOwn uses the crypto custody service of Bankhaus von der Heydt for the safekeeping of the digital assets for investors.

Bankhaus von der Heydt is one of the oldest, independent private banks in Europe, and has been a partner for entrepreneurial investments and innovative investment
structures for more than 250 years. The German bank is looking to specialize in the launch and management of digital assets and is described as playing a pioneering role in Germany in regards to digital assets..

The bank’s wallets were integrated into the investors’ accounts as a white-label solution by Bitbond.

This makes Bankhaus von der Heydt one of the first banks in Germany to actively offer the custody of security tokens or digital securities.

The KHL tokens have been distributed to investors on July 1st and have a term of three years. The digital securities may be traded on the Stellar Decentralized Exchange.  KlickOwn notes that this differentiates its crowdfunding platform from other online capital formation services in the real estate sector as investors are not tied to the term of the investment.

The KHL token has a nominal value of 1 EUR, so even the smallest incremental parts can be traded and resold.

Bitbond created the technical environments for both parties and supports both KlickOwn and Bankhaus von der Heydt as an innovation partner. KlickOwn utilizes Bitbond’s tokenization
technology to create tokens for its issuances on the Stellar Blockchain and to offer an efficient registration process for investors. Bankhaus von der Heydt is said to leverage Bitbond’s technology for the safekeeping of digital assets.

According to Bitbond, future projects are in the works and Bankhaus von der Heydt is planning to issue a digital representation of the Euro (a stablecoin) using Bitbond technology. This will enable payments to be processed efficiently and in real-time via the KlickOwn platform.

 


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