HomeCryptoBitcoin-based security token offering approved in Germany

Bitcoin-based security token offering approved in Germany

German monetary regulators have approved a security token offering (STO) based mostly on a Bitcoin (BTC) sidechain.

Germany’s Federal Financial Supervisory Authority (BaFin) has greenlighted the EXOeu token by sport writer Exordium, making native retail traders eligible to take part in the sale on Stokr, a serious European digital market.

German traders can make investments in EXOeu by way of Stokr with a minimal funding quantity of $100. EXOeu is the second STO ever approved for the German market on Stokr after BaFin approved an STO by parking community ParkinGO final 12 months.

Launched in January 2021, the EXOeu security token is elevating funds for the event of Samson Mow’s sci-fi MMO sport Infinite Fleet. The offering has been accessible for traders in different European nations lik France, Luxembourg, Spain, Portugal, elevating greater than $7 million up to now.

While many STOs are based mostly on the Ethereum blockchain, the EXOeu token is issued by way of Blockstream Amp, a platform for tokenizing securities constructed on the Liquid sidechain of Bitcoin.

“Bitcoin is shaping payments, and it’s about time it shaped capital markets — this can be done via layer two technologies,” Stokr co-founder Arnab Naskar mentioned, including that Ethereum is “losing its charm” as an STO platform as a consequence of excessive gasoline charges and the uncertainty round Ethereum 2.0.

Related: Bitfinex launches security token platform regulated in Kazakhstan

According to Stokr co-founder Tobias Seidl, BaFin’s approval of Exordium’s STO marks a brand new milestone in cross-border blockchain-based STOs. “We see Bitcoin as a fundamental backbone of the future capital markets, which will be built on blockchains,” he mentioned.

The information comes shortly after main crypto alternate Bitfinex introduced final week that it could debut its personal STO buying and selling platform with Exordium (EXO) buying and selling.