Fundament Gets Regulatory Approval for €250 Million Token Offering

Wilfred Michael 

Wilfred Michael

News reporter

23 July 2019,
17:21
Fundament Gets Regulatory Approval for €250 Million Token Offering

Germany based blockchain startup, Fundament Group, revealed today that it had received regulatory approval to issue a tokenized real-estate backed bond worth 250 million euros ($280 million).

The approval was granted by Germany's primary financial markets regulator, BaFin, allowing Fundament to conduct the landmark public token sale available to global investors.

When the marketing of the investment product goes live next month, investors will in exchange for Bitcoin, Ether, U.S. dollars or Euros, receive Ethereum-based tokens (ERC-20) representing their ownership in real estate properties managed by Fundament.

Fundament's co-founder, Florian Glatz even related to Coindesk that the $280 million real estate bond token represents ownership in five construction projects conducted by the startup. Three of the projects are reportedly in Hamburg with the other two located in Frankfurt and Jena respectively.

Glatz also mentioned what benefits investors can get by purchasing Fundament's tokens — an annual dividend of around 4-8 percent, and the total value that was within this fund when the loan period expires.

Moving forward, Fundament's other co-founder Robin Matzke provided insight into the rigors involved in getting regulatory approval for what could potentially become the most widely offered blockchain-based real estate bond for retail investors.

“We handed in the prospectus in December 2018 and got approval last week. So it was 6 or 7 months of work." Matze said.

Excitingly, Fundament's success story with obtaining regulatory approval marks another milestone for the emerging security token industry which Patrick M. Bryne, CEO of Overstock believes would be worth $900 billion in the future.

Just last week, Stmarket.co reported that leading investment manager, Da Vinci Capital started the security token offering (STO) for Gett Taxi, a ride-hailing startup in USA, Russia, Israel, and the U.K.

Also recently, countries like Malta and the Philippines introduced proposed regulations for STOs.

 

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