Bitcoin-based security token offering approved in Germany

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German financial regulators have approved a Bitcoin side chain (BTC) security token offering (STO).

Germany’s Federal Financial Supervisory Authority (BaFin) has given the green light to game publisher Exordium’s EXOeu token, making local retail investors eligible to participate in the sale on Stokr, a major European digital marketplace.

German investors can invest in EXOeu through Stokr with a minimum investment amount of $ 100. EXOeu is the second STO ever approved for the German market on Stokr after BaFin approved an STO through the ParkinGO parking network last year.

Launched in January 2021, the EXOeu security token raises funds for the development of Samson Mows’ sci-fi MMO game Infinite Fleet. The offer has been available to investors in other European countries like France, Luxembourg, Spain, Portugal, raising over $ 7 million to date.

While many STOs are based on the Ethereum blockchain, the EXOeu token is issued through Blockstream Amp, a securities tokenization platform built on Bitcoin’s Liquid side chain.

Bitcoin is shaping payments, and it’s time for it to shape capital markets, it can be done through layer two technologies, said Stokr co-founder Arnab Naskar, adding that Ethereum is losing its charm as than STO platform due to high gas charges and uncertainty around Ethereum 2.0.

Related: Bitfinex Launches Regulated Security Token Platform in Kazakhstan

According to Stokr co-founder, Tobias Seidl, BaFins approval of Exordiums STO marks a new milestone in blockchain-based cross-border STOs. We see Bitcoin as a fundamental backbone of future capital markets, which will be built on blockchains, he said.

The news comes shortly after Bitfinex announced last week that it would be launching its own STO trading platform with Exordium (EXO) trading.

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