A security token offering (STO) based on a Bitcoin (BTC) sidechain has been approved by German financial regulators. The country joins countries such as France, Luxembourg, Spain and Portugal to launch the Bitcoin-based EXOeu token.
Exordium’s EXOeu token has been approved by Germany’s Federal Financial Supervisory Authority (BaFin), allowing local retail investors to participate in the sale on Stokr, a leading European digital marketplace.
With a minimum investment of $100, German investors can invest in EXOeu through Stokr. After BaFin approved a STO by parking network ParkinGO last year, EXOeu is the second STO ever approved for the German market on Stokr.
The EXOeu security token, which became live in January 2021, is used to support the development of Samson Mow’s sci-fi MMO game Infinite Fleet.
Investors from other European nations such as France, Luxembourg, Spain, and Portugal were permitted to participate in the offering, which raised more than $7 million to date.
While many STOs use the Ethereum blockchain, the EXOeu token is created using Blockstream Amp, a platform for tokenizing securities based on Bitcoin’s Liquid sidechain.
“Bitcoin is shaping payments, and it’s about time it shaped capital markets,” Stokr co-founder Arnab Naskar said, adding that Ethereum is “losing its charm” as a STO platform because to high gas prices and uncertainty surrounding Ethereum 2.0.
BaFin’s approval of Exordium’s STO, according to Stokr co-founder Tobias Seidl, marks a new milestone in cross-border blockchain-based STOs. He stated, “We regard Bitcoin as a fundamental backbone of future capital markets, which will be constructed on blockchains.”
The announcement comes after Bitfinex, a major cryptocurrency exchange, revealed last week that it would launch its own STO trading platform, which will support Exordium (EXO) trading.