German financial regulators take approved a security token offering (STO) based on a Bitcoin (BTC) sidechain.

Germany's Federal Financial Supervisory Authority (BaFin) has greenlighted the EXOeu token past game publisher Exordium, making local retail investors eligible to participate in the sale on Stokr, a major European digital market.

German investors can invest in EXOeu via Stokr with a minimum investment amount of $100. EXOeu is the second STO ever approved for the German language market on Stokr after BaFin approved an STO by parking network ParkinGO last yr.

Launched in Jan 2022, the EXOeu security token is raising funds for the development of Samson Mow'due south sci-fi MMO game Infinite Fleet. The offer has been available for investors in other European countries lik France, Luxembourg, Espana, Portugal, raising more than than $7 million to date.

While many STOs are based on the Ethereum blockchain, the EXOeu token is issued via Blockstream Amp, a platform for tokenizing securities built on the Liquid sidechain of Bitcoin.

"Bitcoin is shaping payments, and it'south about fourth dimension it shaped capital markets — this tin be washed via layer ii technologies," Stokr co-founder Arnab Naskar said, adding that Ethereum is "losing its amuse" as an STO platform due to high gas fees and the dubiety around Ethereum 2.0.

Related: Bitfinex launches security token platform regulated in Kazakhstan

According to Stokr co-founder Tobias Seidl, BaFin's approval of Exordium's STO marks a new milestone in cross-edge blockchain-based STOs. "We run across Bitcoin equally a key backbone of the future capital markets, which volition exist built on blockchains," he said.

The news comes before long after major crypto exchange Bitfinex announced last week that it would debut its ain STO trading platform with Exordium (EXO) trading.