Bitbond Plans to Raise $3.9 Million in Germany's 'First' Regulated STO

Blockchain-based lending platform Bitbond says its security token offering is the first to be approved by a regulator in Germany.

AccessTimeIconMay 29, 2019 at 9:00 a.m. UTC
Updated Sep 13, 2021 at 9:15 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Blockchain-based lending platform Bitbond is launching a security token offering (STO) that it says is the first to be approved by a regulator in Germany.

Through the sale, the firm aims to raise €3.5 million ($3.9 million), allowing it to continue providing loans to small businesses, Germany-based Bitbond announced Tuesday. The STO is open until July 8 for investors everywhere except the U.S. and Canada.

The security token, called BB1, works like a bond, and Bitbond will buy back the tokens after 10 years. The prospectus of the STO has been approved by German financial regulator BaFin, the firm said.

Bitbond provides working capital loans to small businesses that use e-commerce platforms like eBay and Amazon in Asia, and claims to have already processed over $15 million-worth of business loans.

Radoslav Albrecht, Bitbond founder and CEO, said:

“Small businesses are an incredibly important part of the economy, and hire the majority of all employed people worldwide. We see this STO as a way to help small businesses create more jobs, and supercharge their own growth.”

Founded in 2013, Bitbond has already raised millions in VC funding to support its loan offerings. Its latest round attracted $5.5 million, and it previously raised $1.2 million, $671,000 and $.2.2 million in three separate funding rounds.

BaFin image via Shutterstock 

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.