Bitbond to Launch Regulated STO to Raise $3.9 Million

German Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term-based lending platform Bitbond is set to raise €3.5 million (around $3.9 million) via a security token offering (STO).

Per Tuesday’s announcement, the raised funds will be used to fund small business in Asia. Investors around the world can participate in the STO until June 8, except for citizens of the United States and Canada.

Do you wan't to see the faces behind the curtain of the #BitbondSTO?✨ Let me introduce you to our amazing team members! We're excited? ? https://t.co/FCqzuTlTlr #innovation #crypto #blockchain

— Bitbond (@Bitbond) May 23, 2019

Founded in 2013, Bitbond offers loans to small businesses and primarily focuses on SMEs using eCommerce platforms, like eBay, Amazon, and Etsy. As seen on its website, its loan volume surpassed $15 million with a user base of over 165,000 spread across 80 countries.

Earlier this year, Finance Magnates reported that the blockchain-based lending platform received a green light from BaFin to issue STOs. According to the peer-to-peer lender, it became the first such blockchain-based financial services to be supervised by the German market regulator.

“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,” Radoslav Albrecht, founder and CEO of Bitbond, said.

Bonds on blockchain

The Security Token Security Token Security tokens are cryptocurrency tokens that represent a contract into an underlying security, which could include stocks, funds, bonds, and real estate investment trusts (REITs.) Security tokens can also be used as a method of fundraising. A security token offering (STO) is similar in nature to an initial public offering (IPO), however involves tokenized digital securities, known as security tokens. These are then sold in cryptocurrency exchanges. Tokens can be used to trade real financial as Security tokens are cryptocurrency tokens that represent a contract into an underlying security, which could include stocks, funds, bonds, and real estate investment trusts (REITs.) Security tokens can also be used as a method of fundraising. A security token offering (STO) is similar in nature to an initial public offering (IPO), however involves tokenized digital securities, known as security tokens. These are then sold in cryptocurrency exchanges. Tokens can be used to trade real financial as Read this Term, dubbed BB1, will work similarly to a bond and the company will buy back the tokens after 10 years. Per Bitbond, the targeted return is eight percent, which includes a combination of a percent p.a. interest coupon and a 60 percent profit participation potential.

The company is bullish with the fundraising technique as Albrecht previously predicted that Bitbond might raise as much as €100 million with STOs.

The German company is also decently funded as, according to CrunchBase, it raised $10.7 million from venture capitals. In the recent debt financing round, the company secured $5.5 million, while previously raising $1.2 million, $671,000 and $.2.2 million in three separate funding rounds.