What Is Bitbond?
Bitbond, a Stellar-based blockchain startup that offers business loans, declared that it has gained German regulatory approval to run a security token supplying (STO).
According to the statement, Germany's Federal Financial Supervisory Authority, better called BaFin, has declared Bitbond's request under the German Banking Act to become a certified advantage agent, making Bitbond the very first blockchain-based financial services firm to be controlled under the body.
“We are the first regulated blockchain company to set new standards. It is important for us to show the investors who trust our platform that we are acting according to transparent rules,” explained Bitbond creator and CEO Radoslav Albrecht, adding that the recent acceptance will help progress STOs in Germany.
Furthermore, token holders get a factor coupon paid out once each year. Both the quarterly and the yearly coupons persist for ten decades, at which stage the volatility reaches its maturity and can be purchased back in its face value of €1.
The profits of the STO is going to be utilised to construct Bitbond's core lending company, which is presently targeting small companies and freelancers. From that point, Bitbond expects to apply innovations in the obligations and credit scoring region.
BB1 Token
BB1 is a security token issued by Bitbond Finance GmbH that will run on the Stellar Blockchain.
Token Sale (STO) Flows
The Offer Period through which purchase offers may be made for the token-based bonds is anticipated to start on March 11, 2019, and end on July 08, 2019. The Issuer reserves the right to shorten this period (especially in the event of a complete positioning ).
The token-based bonds may be subscribed to during the Offer Period by submitting a purchase program (subscription form) to the Issuer as part of an online subscription process on the site of the Issuer. The investor needs to register to subscribe for the bonds over www.bitbondsto.com and complete the subscription form on the internet. Besides personal data, the investor must offer the planned amount of BB1-Token that it wishes to subscribe for and its Stellar Wallet adress to which its BB1-Token is to be moved. The token-based bonds will be issued beyond the blockchain ("Off-Chain") by accepting the subscription arrangement as part of this online subscription procedure.
The investor shall cover Euro or cryptocurrencies to the bank account specified by the Issuer or to the wallet address given in accordance with the amount of tokens payable from the investor. Upon approval of the subscription and upon receipt of the"payment" (EUR or cryptocurrencies), quite a few BB1-Tokens corresponding to the payment sum of these bonds will be created and immediately credited to the pocket of the appropriate investor after the conclusion of the Offer Period. One BB1-Token corresponds to EUR 1 of those subscribed bonds.
The amount of token-based bonds issued is equivalent to the quantity of the whole euro paid in by the creditor or the EUR equivalent of the amount of cryptocurrencies paid (XLM, BTC or ETH) in the time of payment according to the exchange rate (EUR - cryptocurrency) printed on the web site www.cryptocompare.com (or a corresponding platform chosen by the Issuer as explained in § 7.2.5 of this Prospectus. The historic daily average rate published on the calendar day of receipt of payment will always be implemented. With respect to cryptocurrencies, a payment is deemed received if at least one confirmation has been received on the various blockchain of their cryptocurrency.
Following the conclusion of the Offer Period, the respective amount of BB1-Token corresponding to the amount of bonds bought by the investor will be credited immediately to the wallet of their respective investor. For this use, the Issuer will create a so-called "Stellar Asset Issuer Account" and link it to its domain www.bitbondsto.com. This way, a receiver of BB1-Tokens understands it is getting "real" BB1-Tokens issued by the Issuer, i.e., they are not tokens of another issuer. The tokens generated by the Issuer on the Stellar Blockchain are moved to the various Stellar address (public key) supplied by the investor. From this point on, an investor may dispose of the BB1-Token. The various transaction is traceable for everybody over the Stellar Blockchain and the BB1-Token could be clearly assigned to a investor or its own public key within the northeast Blockchain.
Regulated By BaFin
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Getting the BaFin (Germany’s Federal Financial Supervisory Authority) licence is a huge step for Bitbaond. It provides regulatory clarity for their users and investors. It also shows that it is possible to get regulatory approval for Bitcoin based business models. The team seen a great response from the peer-to-peer community since the news broke.
Getting the license was a comprehensive process and BaFin checked numerous aspects of the bitbond platform. The Bitbond team has been in contact with BaFin since its launch in 2013, so the whole process took three years. In the beginning, the main challenge was to explain its own business model to BaFin in detail. Then they needed to find a way to apply the existing regulatory framework to Bitbond business model. Details Here.
Congclusion
The breakthrough made by bitbond is a big step in the world financial industry, especially Germany. Bitbond has proven an innovation that combines traditional financial techniques combined with blockchain technology. Bitbond has good prospects for the future. Something that must be maintained and invested. the right step must be taken now!
Author: roberdecryptos
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