Berlin-based blockchain start-up Fundament announced on Tuesday that it had been granted approval by the country chief regulatory body for the €250 million Ethereum token sale. It will be a security token sale backed by real estate bonds.
Fundament Real Estate Token gets approval by German Financial Supervisory Authority!
We received green light for the sale of our #securitytoken.
The token is backed by a real estate portfolio worth EUR 250 million.
Stay tuned for exclusive news on our upcoming public sale. pic.twitter.com/ipBw3abp1X
— Fundament Group (@GroupFundament) July 23, 2019
The primary motive of the company to tokenize traditional assets was to create a globally accepted asset, without dependence on the banking systems. Also, the company finds a huge business scope in liquidating the rigid real estate market in Germany. While commenting on the approval, the start-up’s co-founder and chief, Florian Glatz said,
“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.”
Germany has been one of the leading European countries in terms of blockchain innovation. However, there hasn’t been any crypto boom in the country yet. Fortunately for the industry, the attitude of German authorities towards digital assets is changing for good. Recently, the German Central Bank, Bundesbank, stated that potential benefits of Libra shouldn’t be ignored.
In the second half of last year, Germany’s second-largest stock trading platform, Börse Stuttgart, declared that it is developing a separate platform for promoting Initial Coin Offerings (ICOs). While speaking to reporters, Germany’s regulator, BaFin said,
“We can confirm that we granted approval for a Fundament Group prospectus. It has indeed been the first time we have approved a prospectus regarding blockchain-based real estate bonds, but not the first time in respect to blockchain technology as such.”
At a time when the US and other regulators globally are tightening their grip on crypto, Germany’s approval has shown the way towards a progressive future. Economists and financial industry experts have, time and again, stated that cryptocurrencies are the future of the global monetary system, and countries like Russia developing their own tokens is a testimony to the fact.