Project Overview

The main function of the issuer is granting loans using cryptocurrencies, like Bitcoin or Stellar Lumens, to different enterprises and people.This happens through Bitbond’s Bitbond GmbH brokerage platform where they host potential borrowers complete with the loan amounts and conditions, including interest rate and term of the loan.

Sector

Cryptocurrency Lending

Issuance Jurisdiction

1, Federal Financial Supervisory Authority (BaFin), Germany

2, Approved securities prospectus according to EU Prospectus Regulation: https://www.bitbondsto.com/files/bitbond-sto-prospectus-de.pdf 

Key Milestones

  • 2013: Bitbond was founded and is based in Berlin, Germany
  • January, 2019: Pioneered financial markets with Germany’s first Security Token Offering (STO) by receiving BaFin approval for a tokenized bond in January 2019. Hard-cap: €100M

Technology
1, Stellar Blockchain

Stellar is an open-source and decentralized protocol for digital currency to fiat money transfers which promotes interoperability by allowing for cross-border transactions between all currencies The Stellar protocol is supported by a 501(c)3 nonprofit, the Stellar Development Foundation.

The Stellar network utilizes its own digital currency called the lumen which is required in small amounts to initialize accounts and conduct transactions.

2, The Wallet

The investor must use a wallet that is compatible with Stellar Lumens Assets. If BB1-Tokens are transferred to an incompatible wallet, the case is often that the investor loses access and the ability to dispose of the BB1 Tokens, resulting in a complete loss of the investment.

Financial Traction (EUR)

  • Overall traded volume (BB1) :262,903 USD
  • Over 3,000 loans have been funded on the platform
  • €13M+: worth of SME loans funded in over 80 countries  

Total Capital Raised from STO and Valuation

  • Funded: $2,300,000 USD
  • Accepts: EUR, XLM, BTC, ETH
  • Bond type: corporate bond.
  • Seniority: subordinated unsecured debt
  • Industry: Finance
  • Issued on: July 1, 2019.
  • Maturity: July 1,2029.
  • Fixed coupon: 4.00% p.a. (frequency: quarterly, first coupon date: October 1, 2019).
  • Floating coupon: 60% of the pre-tax profit of Bitbond Finance (frequency: annually).
  • Par value: €1.00
  • 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.

Investor Profile

Total €5 Million raised in Equity Investment

1, Point Nine Capital (THE ANGEL VC)       

Point Nine is an early-stage Venture Capital firm from Berlin, and has invested in companies like Delivery Hero, Revolut and Zendesk, to name a few.

2, Sky Level Group (GROUP OF INVESTORS)

Sky Level is a group of experienced and serial investors who have invested in companies like Moilike.

3, Nelson Holzner (CO-FOUNDER, BILLPAY) 

4, Christian Vollmann(ANGEL INVESTOR)   

5, Alexander Graubner-Müller (CO-FOUNDER, KREDITECH)  

Team

1, Radoslav Albrecht (FOUNDER & CEO) 

Radoslav is the founder & CEO of Bitbond. He is often a featured speaker at financial innovation and financial inclusion conferences. Prior to Bitbond, he worked for Roland Berger Strategy Consultants and advised restructuring and post-merger integrations for financial services providers across Europe and Western Africa. Prior to that Radoslav was with Deutsche Bank London.

2, Jarek Nowotka (CTO) 

Jarek has spent an extensive amount of time building products powered by web, mobile, augmented reality, and blockchain, with a focus on UX.

3, Michael Pinkus(CFO)

Michael specializes  in banking and credit products. He was a Managing Director at German IKB and a lawyer for Hengeler Mueller and KPMG.

References

  1. “Bitbond (STO) - Security Token Overview.” STOscope, com/sto/bitbond.
  2. Bitbond|STO. Apr. 2019, bitbondsto.com/files/bitbond-sto-lightpaper.pdf.
  3. “Germany's First Security Token Offering.” Bitbond STO, bitbondsto.com/?a=DNUGZO