BaFin Approves €250 million Token Offering by Fundament

Germany-based end-to-end security issuance solution for asset tokenization, Fundament Group has received approval from the country’s Financial Market Supervisory Authority (BaFin) to distribute real estate bond within the state.

The regulatory approval purportedly allows the startup to issue a proposed €250 million ($280 million) bond, which will be backed by a portfolio of properties in major cities across Germany.

Fundament will distribute ownership to investors via a token based on the Ethereum blockchain, thus marking the country’s first-ever real estate backed security token regulated by BaFin. The other approved STO was for a lending startup, Bitbond.

The Fundament Real Estate Token upon issuance will inject liquidity into traditionally illiquid real estate investments. Hence, investors can now quickly liquidate investments anytime, on designated secondary markets.

Notably, Fundament’s solution builds a tradable asset class backed by real estate projects since the token is set to be marketable worldwide and independently of banks. 

“As the first company to receive approval from the German Financial Market Authority for a blockchain-based real estate bond, we are excited to enter the sales process for the Real Estate Security Token, while already preparing the tokenization of other highly attractive assets,” said Florian Glatz, Co-Founder of the Fundament Group.

With a team of experienced real estate developers, lawyers, and political advisors, the Fundament Group hopes to provide a link between the traditional capital market and digital blockchain-based financing. 

Adopting this approach, thus allows investors worldwide to access the German real estate market via the tokenized bonds. Also, provisions will be made for investors to decide whether to make deposits and withdrawals in Euros, Dollar, Bitcoin, or Ether.

In another news about token offerings, Coinfomania reported yesterday that the Malta Financial Services Authority (MFSA) introduced proposed regulatory guidelines for Security Token Offerings (STOs).