Bitbond to Launch Regulated STO to Raise $3.9 Million Euros
Bitbond, a German blockchain lending platform, recently announced the issuance of its bonds, the first issue of its security tokens (STO), with the goal of raising about 3.9 million euros. The funds will be used for loans to small businesses, and the STO will be issued until July 8.
Bitbond claims that this STO is the first security token approved by the German regulator, the token-equivalent bond named BB1, each priced at 1 euro. Its pre-sale began as early as March 11 this year and has raised 2 million euros as of April 22. The company also said that after 10 years, the securities will be repurchased at a price of 1 euro. Investors can buy and sell in the Stellar Decentralized Exchange, as well as in the first-line cryptocurrency exchanges announced in the future, but do not allow US and Canadian citizens to invest.
According to the Bitbond website, the company was established in 2013 to specialize in small business loans, while the latest round of financing received 42.9 million yuan. Since its establishment, it has more than 165,000 users and handled more than 3,200 loans, totaling 131 million yuan. As for the BB1 issued this time, the assets behind it are commercial loans, while 40% of the funds raised are used for SME loans, 40% are used to reinvest other bonds, and the remaining 20% are used for daily operations. Expenditure such as marketing.