Germany approves Bitcoin-based security token

Germany approves Bitcoin-based security token

Germany’s financial regulators have given their nod to a security token offering (STO) based on a Bitcoin sidechain.

Germany’s Federal Financial Supervisory Authority (BaFin) has approved game publisher Exordium’s EXOeu token, enabling local retail investors to participate in the Stokr sale. Stoke is a major European digital marketplace.

Now, investors in Germany can invest via Stokr on EXOeu, with the minimum investment amounting to $100. EXOeu is recorded to be the second STO that has received approval of the German market on Stokr after BaFin greenlighted an STO by parking network ParkinGO in 2020.

The EXOeu security token, launched in January 2021, is currently raising funds for developing Samson Mow’s MMO game Infinite Fleet. The recent offering has been open to investors in European countries, including Luxembourg, Spain, France, Portugal. It has raised more than $7 million till now.

The EXOeu token is issued via Blockstream Amp, unlike other STOs based on the Ethereum blockchain. Blockstream Amp is a platform used for tokenizing securities that are built on the Liquid sidechain of Bitcoin.

 Stokr co-founder Arnab Naskar has said that Bitcoin is “shaping payments”, and time is now that it “shaped capital markets”, which can be achieved using layer two technologies.

Naskar further added that Ethereum is now “losing its charm” as an STO platform owing to exceptionally high gas fees and the uncertainty surrounding Ethereum 2.0.

Tobias Seidl, Stokr co-founder, has said that BaFin’s approval of Exordium’s STO has marked a new milestone in cross border blockchain-powered STOs. Seidl called Bitcoin “a fundamental backbone of the future capital markets” that is soon going to be built entirely on blockchains.