In Germany, a Security Token Offering (STO) is on hold for the time being. The reason for this is the current market situation due to the corona virus.

The German Federal Financial Supervisory Authority (BaFin) is considered one of the strictest regulatory authorities worldwide. Nevertheless, it sometimes seems to be happy to increasingly approve Security Token Offerings.

For example, it has also approved a real estate security token offering on the Black Manta Capital Partners (BMCP) platform. The GmbH had planned to enable investors to invest in real estate via tokens. Starting at 500 Euros, private as well as institutional investors should be able to invest in a Berlin residential property.

Black Manta postpones offer

However, the STO has now been put on hold for the time being. Due to the current market situation and the coronavirus, the timing is not considered ideal for reaching investors.

The offer is intended for investors from Austria and Germany. The residential project belongs to Tigris Immobilien GmbH and, according to the press release of Black Manta GmbH, has a total volume of almost 11 million euros. Of this, a share of 1,999,500 euros is to be cast in token form.
The project itself has a usable area of around 2,000 m² and half of it consists of an old building. A new building is to supplement the existing building by the year 2020. Owner-occupiers or investors can then buy it. And this is where the token holders come in: they receive securitized profit participation rights of 20 percent.

Security Token Offering (STO)? What is that anyway?

Security Token Offerings, or STOs for short, enable the surrender of digital assets. With that, companies can bring assets or shares in them into token form. Investors can later trade them on secondary markets. However, STOs are becoming increasingly popular, especially in the real estate sector.

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