Bitbond’s regulated security token BB1 has officially started trading. The bond-like security was the first regulated such token to be approved in the EU.
The first EU-regulated security token is now officially trading. The token, issued on the Stellar blockchain, has been a milestone for the security token industry in Europe and may signal to regulators that the industry is mature enough for more approvals.
Bitbond will likely also trade on the Gibraltar Stock Exchange (GSX) sometime soon. The two announced an exclusive partnership as the GSX explores digital assets. Bitbond may be the first. Since Bitbond completed its STO, two other STOs have been approved by the German regulator BaFin.
The description for Bitbond on the Stellar platform reads:
BB1 is a bond (tokenized security). Bond type: corporate bond. Seniority: subordinated unsecured debt. Industry: Finance. Country of issue: Germany. Issued on: 01-JUL-2019. Maturity: 01-JUL-2029. Fixed coupon: 4.00% p.a. (frequency: quarterly, first coupon date: 01-OCT-2019). Floating coupon: 60% of the pre-tax profit of Bitbond Finance (frequency: annually). Par value: 1.00 EUR. ISIN: DE000A2TR7Q2. ITIN: 8WR5-AKBG-X. All coupons and the repayment of BB1 are EUR denominated and paid in XLM to holders of BB1 at the time of a payment due date.
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Image courtesy of EU-startups.