The Bitbond STO was launched in Germany, the first to be officially approved by the BaFin regulation body.
Bitbond, an SME lending company, aims to raise €3.5 million. Specifically, the funds raised through the STO will be used to finance Asian retailers operating online on e-commerce platforms such as eBay, Amazon and Etsy.
The offer will be active until July 8th and is open to investors from all over the world, with the exception of those from the United States.
According to the website, Bitbond has already disbursed over 15 million euros with more than 3,200 commercial loans to SMEs and more than 165,000 registered users in 80 countries that use blockchain technology to facilitate cross-border payments and automated training for efficient credit-scoring.
Radoslav Albrecht, founder and CEO of Bitbond, said:
“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. 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”.
Regulation in Germany and the USA
The curious thing is that the US is far behind in the process that should lead to the approval of STOs, since the issuance of a so-called security token in the country requires a transfer agent registered with the SEC. This is favouring Europe despite the fact that it seems far behind the USA in the crypto sector.
To date, the obstacle preventing the US market from approving STOs does not seem to be easy to remove, meaning that it could take a long time for the country to find a solution or alternative.
Other markets, on the other hand, are proving to be more open to this novelty, although they are not necessarily at the forefront of the crypto world. Germany, for example, is not one of the world’s most advanced countries in the development of new blockchain technologies in the financial sector, yet it has already been able to launch its first STO officially approved by the local financial market monitoring body.
The Teutonic country, however, is not the first to officially approve an STO: there have already been other cases in Great Britain, while in Malta they have even organised an STO Battle. As a matter of fact, also the Nasdaq seems to be working on a platform for STOs in the USA, but in light of the bureaucratic problems in the country, this platform may not be operational anytime soon.