Businesses around the world need to stay afloat despite the crunches of the economy, which threaten their continued existence. One of the mediums of financing their needs is by seeking loans for the extension of services to the targeted audience. It’s sad to note that much success hasn’t been achieved in this regard because banks and many other financial institutions tend to exploit the situation to their benefit.
However, there has been a change in this regard after the inception of the blockchain technology era. Founded in the year 2013, Bitbond, a Germany-based FinTech company offers loans to viable small and medium scale enterprises in over 80 countries. It has now delved into the distributed ledger; a move that holds more opportunities for businesses seeking loans.
A Paradigm Shift to an Asset with Security Frameworks
It doesn’t come as a surprise that this project is taking a stride that would remain indelible in the German investment sector. Bitbond officially declared its quest to create a security token called “BB1”. While this move is commendable and it helps to extend the services, it’s also worth mentioning that the formulation as a security token was to overcome inherent problems associated with ICOs.
First, the BB1 has relevant support because the German financial regulator, BaFin, has given approval for the token. In the same regard, Bitbond is compliant with the EU security prospectus. Hence, its security token already has an assurance of massive adoption in Europe and Germany.
Creating more Loans
It’s worth mentioning that the token doesn’t stop at offering full-scale security. The overall intention is to create more loans for the teeming borrowers/SMEs that would love to utilize it. For that reason, Bitbond already has plans to earmark a huge amount of the BB1 token for loan purposes. As proposed by the team behind the project, the raised funds and those issued as loans are expected to drive an annual loan value of €1 billion by the year 2022.
Interesting Times for Investors
Since its inception in 2013, Bitbond has been able to amass investors while forging new avenues to its lending business. With the launch of its security token, the investors are in a better position to reap massive benefits that accrue to their investments. For instance, Bitbond promises to pay a 1% interest to each investor at the end of each quarter. This amounts to a 4% interest at the end of a year. Considering the fact that the investments would run along with the 10-year token maturity period, Bitbond’s investors are in for a profitable deal.
Worthy of mention is the fact that the investors’ funds are used as loans for SMEs, who would pay back at the given timeframe with interests. On its part, Bitbond pays quarterly interests to its investors using Stellar (XLM) tokens. These can, in turn, be converted into stablecoins or fiat supported currencies.
Conclusion
A new dawn is in the offing for the global lending industry, especially those hinged on the blockchain technology. Bitbond in the past created a name for itself in global financing, and now uses its latest disposition (security token) to extend the horizons of its services.
To get more details about this project,please, check the below links;
Bitbond Website: https://www.bitbondsto.com/
Lightpaper: https://www.bitbondsto.com/files/bitbond-sto-lightpaper.pdf
Bitcointalk bounty link: https://bitcointalk.org/index.php?topic=5140584.0
Bitcointalk ANN link: https://bitcointalk.org/index.php?topic=5130337.0
Telegram for InvestorsL https://t.me/BitbondSTOen
Twitter: https://twitter.com/bitbond
Facebook: https://www.facebook.com/Bitbond/
YouTube Channel: https://www.youtube.com/user/Bitbond
Instagram: https://www.instagram.com/bitbondofficial/
Writer's details
Bitcointalk profile link: https://bitcointalk.org/index.php?action=profile;u=1777715
Bitbond Affiliate link: https://www.bitbondsto.com/?a=DGMQVP