• In Germany, a security token offering based on bitcoin has been approved

  • A security token offering (STO) based on a Bitcoin (BTC) sidechain has been approved by German financial regulators.

    Germany’s Federal Financial Supervisory Authority (BaFin) has approved Exordium’s EXOeu token, allowing local retail investors to participate in the sale on STOKR, a major European digital marketplace.

    German investors can invest in EXOeu through STOKR for as little as $100. After BaFin approved a STO by parking network ParkinGO last year, EXOeu is the second STO ever approved for the German market on STOKR.

    The EXOeu security token, which will be released in January 2021, is being used to raise funds for the development of Samson Mow’s sci-fi MMO game Infinite Fleet. Investors in other European countries such as France, Luxembourg, Spain, and Portugal have been able to participate in the offering, which has raised more than $7 million to date.

    While many STOs use the Ethereum blockchain, the EXOeu token is issued through Blockstream AMP, a platform for tokenizing securities built on Bitcoin’s Liquid sidechain.

    “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 said, adding that Ethereum is “losing its charm” as a STO platform due to high gas fees and ETH 2.0 uncertainty.

    TOKR co-founder Tobias Seidl believes that BaFin’s approval of Exordium’s STO marks a new milestone in cross-border blockchain-based STOs. “We see Bitcoin as the fundamental backbone of future capital markets built on blockchains,” he said.

    The announcement comes just days after Bitfinex, a major cryptocurrency exchange, announced last week that it would launch its own STO trading platform with Exordium (EXO) trading.

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