The enterprise lending solutions provider, BitBond Finance concluded its STO this week. The public crowdfunding event officially started in March of this year. In total, BitBond secured €2.1 million in funding from the STO. Interestingly, this event was the first regulated STO held in Germany.
Now, BitBond seeks to expand its platform’s service to include a host of other digitized products. These products are first to include tokenized bonds. Tokenized bonds, much like tokenized shares, utilize blockchain’s efficiency to reduce delays and costs associated with transactions.
The STO propelled BitBond into the spotlight. The media coverage alone was impressive with the company receiving over 1000 articles covering the event. Unsurprisingly, BitBond’s STO saw participation from 87 countries. Most of which, the firm has issued loans in.
Earlier in the year, the German securities regulator, BaFin, approved BitBond’s application. As one of the first platforms to be licensed, BitBond represents a shift in the traditional business systems employed. As part of the approval, the platform gained an International Securities Number. This number allows BitBond to remain compliant across borders. This is critical to the company’s all-inclusive strategy.
BitBond Finance Investors Benefits
Investors received BB1 tokens for their contributions. Token holders receive a profit share from the company’s new platform. According to STO details, investors receive 4% per annum to start off with. After a specified time, these returns will go up to as high as 8%. In total, 60% of BitBond’s future profits are earmarked for investors.
BitBond entered the lending market in 2013. At that time, it was among one of the first instant lending platforms to offer services worldwide. The company currently issues €1 million in loans a month. Now, BitBond intends to leverage its positioning to enter into the tokenized bond market in a major way.
BitBond will issue tokenized bonds using its own proprietary software. As part of the new licensing, the company handles, clearing, settlement, and custody of these digital assets. Tokenized bonds clear much faster than traditional bonds. For comparison, tokenized bonds can clear in hours, versus days. Now investors have a better alternative to consider.
BitBond’s lending platform has seen great success to date. The platform utilizes a blockchain-based peer-to-peer protocol to facilitate near-instant loan approval. The company provides access to funding to medium and small-sized businesses. The speed and global reach of the platform were previously unimaginable prior to the advent of blockchain technologies.
Traditional Financial Institutions
BitBond also works with traditional lending institutions. Earlier in the year, the firm partnered with a German online bank to send funds internationally. The program was a huge success which helped cement BitBond as a major player in the tokenization marketplace.
BitBond has shown that it has a strong understanding of the global marketplace and how blockchain technology can increase efficiency. More importantly, the firm continues to be a pioneer in the digital economy. You should expect to hear more big developments surrounding this platform in the coming weeks.
Fundament And Bauwens to Tokenize Emporio Tower
The tokenization firm Fundament upped the ante this week after the company announced that it successfully partnered with one of the most prestigious real estate developers in the country – Bauwens. The maneuver places Fundament at the forefront of the German tokenization sector. Also, it signals a shift from major real estate firms in the area over to a blockchain-based strategy.
Strategic Investor – Fundament
The real estate giant Bauwens is one of the largest development firms in operation across Germany. The firm currently manages billions in investment properties, most notably, the iconic Emporio Tower.
The Emporio Tower is one of the most recognizable buildings in Hamburg. The 98-meter high structure entered service back in 1964. Originally, the building served as the global headquarters for Deutsche Unilever before the firm relocated in 2009. Today the building is a tourist attraction and serves as a luxury hotel.
According to Fundament executives, negotiations started in May. At that time, Bauwens showed interest in the growing tokenization sector. Interestingly, the firm secured a 15 percent stake in Fundament back in September 2019.
An Industry First
Fundament was a prime investment for Bauwens after it became the first firm to gain approval from German regulators – BaFIN. The approval allows Fundament to issue tokenized real estate bonds in a compliant manner.
Managing director, Alexander Jacobi praised the strategic partnership. He took a moment to discuss the important milestone Fundament achieved. He ended his statement after calling Fundaments tokenized bond a “decisive breakthrough” in the market.
Fundament entered the market in 2017. The Berlin-based FinTech firm pioneered tokenization in the region. The company achieved numerous industry firsts since its BaFIN approval. Importantly, the company utilizes the Ethereum blockchain to issue security tokens.
Now, Fundament seeks to expand its platform’s capabilities. The firm announced plans to host a $280 million Initial Bond Offering (IBO). According to company documents, the real estate bond token sale will start on October 8.
The tokenized bonds represent shares in five large construction projects currently underway in the country. The project’s locations make them ideal investments. There are three properties located in Hamburg, one in Frankfurt, and one in the college city of Jen. Notably, Company officials stated that they may consider adding additional properties from Bauwens.
Speaking on the new developments, CEO, Thomas Ermel discussed the nuances of the new partnership. He explained that not all of Bauwens properties are a good fit for tokenization. His firm chose the properties that best suited the strategy.
Ermel also discussed Bauwen’s market positioning. He explained that the company has the type of reputation that can entice more investors to the project.
Bauwens Goes Hi-Tech
Bauwens already works with numerous tech firms in the industry with company officials explaining the platform’s interest in tokenizing portions of its portfolio via bonds. Now, Fundament and Bauwens are ready to take the German real estate sector to the next level with their latest venture.
Deutsche Bank Bond Tokenized on EOS Blockchain -dBond
This week, the open-source tokenization platform dBond celebrated the successful tokenization of a Deutsche Bank bond on the EOS blockchain. EOS has long been touted as a superior tokenization protocol and the accomplishment is a milestone for the entire EOS camp.
News of the strategy emerged via a dBond medium post. Notably, the post explained the concept was a first in the marketplace. Interestingly, Deutsche Bank had nothing to do with the tokenization. the dBond develop team figured out how to tokenize the bond without the need for the bank’s approval.
The EOS blockchain is the backbone bone of the entire project. In fact, the concept is possible only because the DUSD stable coin and the newly tokenized bonds both utilize EOS’s 4th generation blockchain which features robust smart contract capabilities.
EOS made headlines just this week after developers released the Version 2.0 of the EOSIO protocol. The new protocol improves on the blockchain’s already impressive smart contract programming capabilities. It’s precisely these capabilities that made EOS a wise choice for the bank to consider.
Additionally, EOS recently settled with the SEC to the tune of a $24 million dollar fine for their 2017 ICO in which the company raised $4.1 billion in funding. The SEC alleged that EOS illegally offered securities during the ICO. Now, EOS is fully in line with regulators. In this manner, the platform is now ready to step into the tokenized securities and bond markets.
How it Works
According to the post, an investor purchases a USD-denominated bond. At this point, the new bond deposits into an escrow account. Then, thebondsacc contract requests the creation of an equally valued DUSD nominated tokenized bond. This new tokenized bond is locked up in a thedeposbank account for the required waiting period before a new dBond is issued as DUSD collateral.
Tokenized bond issuance on the EOS blockchain is an important milestone for the firm. Currently, EOS ranks as the #8 cryptocurrency in terms of market cap on CoinMarketCap. The coin has a market cap of $2,659,051,489 (334,977 BTC) with a 24-hour trading volume of $1,673,947,931.
Deutsche Bank Looks Towards the Digital Economy
EOS continues to position its organization to play a pivotal role in the digitization of the economy. When you consider that the EU market is set for a huge expansion in the blockchain financial sectors, both EOS and dBonds is a step ahead of the competition. You can expect to see dBonds expand upon this concept in the coming weeks.
FAT Brands turns to Cadence in $30M Bond Issuance
Investors hungry for profit need look no further than a recently announced bond issuance by FAT Brands restaurant chain, Fat Burger.
Made possible through a partnership with blockchain specialists, Cadence, Fat Burger is looking to tokenize and issue a $30 million bond.
This issuance will see investors afforded the opportunity to earn guaranteed returns on investment, as the bonds essentially represent a loan to Fat Burger.
While the intent of both Fat Burger and Cadence has been confirmed, the details and structuring of the event have not yet been divulged. This includes a variety of details such as repayment schedules, interest rates, terms, etc. What can be confirmed is that the digital issuance will take place on a public Ethereum blockchain, and will coincide with traditional paper-notes being issued as a ‘back-up’.
Speaking with Forbes, the CEO of FAT Brands took the time to comment on this decision for a bond issuance.
Andy Wiederhorn, CEO of FAT Brands, states,
“FAT Brands is working with Cadence as the lead arranger to do a whole business securitization…Similar to other issuances arranged by Cadence, a digital asset will be created that is a digital reflection of ownership for every investor in structured notes.”
In his discussion with the news outlet, he continued by explaining the thought process for turning to Cadence and blockchain technologies.
“The digital asset serves as a digital reflection of ownership and provides a level of transparency into the cap table of each structured note…Cadence has already issued 16 different structured notes to date as of the end of August, and so it is likely that investors who have invested in prior Cadence offering will be investing in this offering as well…By issuing this digital asset, Cadence provides a level of transparency into the cap table that has never existed before.”
One of eight restaurant chains owned by FAT Brands, FatBurger operates with over 200 locations throughout the United States.
CEO, Andy Wiederhorn, currently oversees company operations.
Founded in 2018, Cadence is a U.S. based company, operating out of New York City. The team behind the project has developed a platform targeting both institutional, and retail, investors. Their success over the past few years has notably resulted in the backing of industry giants such as Coinbase.
Company operations are overseen by Founder, Nelson Chu.
In Other News
The issuance of tokenized bonds is becoming a popular choice for a variety of companies. The following articles demonstrate various instances of big banks dipping their toes in the water, as their growing interest in the process becomes apparent.
- Christian Platzer, Co-Founder & Managing Partner of Black Manta Capital – Interview Series
- The Managed Stablecoins are Securities Act of 2019 H.R. 5197
- Max Crowdfund STO Promises to Fuel Tokenization Revolution
- Securitize Increases Ties to Japan through First Acquisition
- The Future is Bright for Bison Trails as Series A Nets $25.5M