Small business loan company Bitbond is raising €3.5 million in a Security Token Offering (STO) to support SMEs in Asia. This marks the first STO in Germany to be approved by regulatory body BaFin.
Bitbond Launches First Regulator-Approved STO in Germany
As a small business loans provider, Bitbond has already facilitated over €13 million in business loan volume supporting SMEs using eCommerce platforms, like eBay, Amazon, and Etsy.
The money from this STO will be invested in loans to help SMEs and online retailers in Asia succeed. Bitbond’s is the first STO in Germany to have its prospectus approved by the German regulator BaFin.
The platform currently supports over 150,000 users in 80 countries using blockchain technology to facilitate cross-border payments and machine-based learning for efficient credit-scoring. Radoslav Albrecht, Bitbond’s Founder & CEO told Bitcoinist:
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.
Why This Is the Starting Gun for STOs
The fact that German regulators are on board with digital securities offerings is significant. Blockchain technology could serve to unlock capital for small businesses all over the world. Albrecht explains:
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.
Many businesses are already benefiting from the platform. Dr. Joemar Taganna, a bioengineer, received a business loan from Bitbond to help launch his software development business SciBiz. She enthused:
It’s much easier to secure a Bitbond loan than more traditional routes to seed finance.