Bitfinex Securities Ltd, a platform specializing in the listing and trading of security tokens and the company behind stablecoin Tether (USDT), has announced the successful raise of $5,200,100 USDt through one of the world’s first tokenized bond issuances. The issuer of the bond is the Luxembourg-based securitization fund ALTERNATIVE, managed by microfinancing leader Mikro Kapital. The bond is listed at the AIFC in Kazakhstan.
Tokenized Bond Issuance
The aim of this tokenized bond is to raise a volume of USDT 10,000,000 from accredited investors. Thus, the 5.2 million now published by Bitfinex is only a bit more than 50% of the goal. It is not clear whether this is to be regarded as a success.
The tokenized bond, known as ALT2612 (website), listed on AIFC in Kazakhstan, marks a significant milestone as the first of its kind in the microcredit industry and among the first globally. With a 36-month tenor and a 10% coupon denominated in USDt, ALT2612 reflects Mikro Kapital‘s transition from conventional bond issuances to the realm of tokenized bonds, leveraging their extensive expertise in the field.
Mikro Kapital (website) stands as a prominent entity in microfinancing, managing a diversified lending book with 300,000 borrowers across 14 countries and an aggregate worth of over 1 billion euros. This venture into tokenized bonds represents a strategic expansion of their financial offerings.
Technological Backbone: The Liquid Network
The bond was issued on the Liquid Network, a side-chain of the Bitcoin blockchain designed specifically for asset issuance like regulated security token offerings. The network’s capabilities include enforcing transfer restrictions and creating whitelists, thus meeting regulatory obligations while offering investors the flexibility of self-custody and peer-to-peer trading of securities.
Joint Efforts and Future Collaboration
Jesse Knutson, Head of Operations at Bitfinex Securities, expressed enthusiasm over this collaborative achievement with Mikro Kapital, indicating a future of continued partnership in tokenized bond issuances. Recently, Mikro Kapital and Bitfinex Securities also agreed to explore asset tokenization and the utilization of USD-backed and Euro-backed Tether tokens within microfinancing.
Paolo Ardoino, CEO of Tether and CTO of Bitfinex Securities, emphasized the importance of this issuance beyond fundraising, viewing it as a significant step towards integrating USDt in the microfinancing industry and bridging the gap between traditional and crypto investors.
About Bitfinex Securities
Bitfinex Securities, registered and licensed in the AIFC and El Salvador, offers a regulated, efficient global solution for tokenized security issuances and secondary market trading. As the first global digital asset platform licensed in the AIFC and under El Salvador’s new Digital Asset Laws, Bitfinex Securities is at the forefront of integrating digital asset solutions into the broader financial market.
