Germany’s Federal Financial Supervisory Authority (BaFin) has approved a security token offering (STO) based on a Bitcoin (BTC) sidechain.
It has been reported that BaFin has greenlighted the EXOeu token by game publisher Exordium, making local retail investors eligible to participate in the sale on Stokr, a major European digital marketplace.
However, German investors can invest in EXOeu via 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 by parking network ParkinGO last year. Launched in January 2021, the EXOeu security token is raising funds for the development of Samson Mow’s sci-fi MMO game Infinite Fleet.
The report said that the offering has been available for investors in other European countries like France, Luxembourg, Spain, Portugal, raising more than $7 million to date. While many STOs are based on the Ethereum blockchain, the EXOeu token is issued via Blockstream Amp, a platform for tokenizing securities built on the Liquid sidechain of Bitcoin.
Arnab Naskar, the co-founder of Stokr, said:
“Bitcoin is shaping payments, and it’s about time it shaped capital markets — this can be done via layer two technologies.”
He added that Ethereum is “losing its charm” as an STO platform due to high gas fees and the uncertainty around Ethereum 2.0.
Likewise, Stokr co-founder Tobias Seidl said that BaFin’s approval of Exordium’s STO marks a new milestone in cross-border blockchain-based STOs.
Thus, he added:
“We see Bitcoin as a fundamental backbone of the future capital markets, which will be built on blockchains.”
Source: Cointelegraph