Bitwala plans its own expansion financing through a security token offering. Not the first smart move by the blockchain company.
Blockchain financing via the issue of profit participation rights
The rather young company Bitwala is often dubbed as Blockchain Bank. And the service provider quite rightly bears this name, as customers have been able to lead a Bitcoin account with the bank for some months. While the courses for a number of important coins such as Bitcoin or Ripple came under pressure again last week. The Berlin fintech company Bitwala demonstrates for which purposes the Blockchain can be used in the future.
In order to get fresh money, the company has decided on the way to profit participation rights. This is done via a security token offering, as more and more other companies from different industries are considering. In turn, the blockchain will be used to realize the innovative financing solution using STO.
Trading platform is currently under development
The name of the token is also already known. It will be called the BWL Token and will enable more flexible and immediate trading between participants in the introductory Bitwala trading platform. So this is what modern expansion looks like.
Around the STO is certain that the bank on a 15 year term of the securities sets. The same could later be bought and sold via the said platform. In the long term, the company also sees potential investors and platform users, especially in young investors. As the so-called Millenials are particularly interested in digital investments as a whole and not just Litecoin, Ethereum and other currencies.
Private investors could also participate at a later date
Meanwhile, Bitwala’s focus is on institutional investors who are addressed with the Security Token. Investors are mainly seen in Asia, where digital assets are generally more mass-compatible than in Germany. Investments should be feasible via the Blockchain from 100,000 euros, previously it requires the approval of the BaFin. The annual return for lenders will be 4.73% per annum. Even if normal investors are excluded, the STO project is exemplary for the use cases of Blockchain. Even in the classic stock market environment, because even on a possible IPO Bitwala management already thinks.
Also published on Medium.