Bitfinex Securities Breaks Ground with Tokenized Bond Launch on Liquid Network

• Bitfinex Securities announced that a Luxembourg-based fund manager Alternative raised about $5.2 million in USDT tokenized bond with a 36-month maturity.
• The tokenization of real-world assets on blockchain technology is expected to open up the global economy that was previously locked by geopolitical differences.

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The blockchain use cases have been amplified by the cryptocurrency industry in the past few years to a trillion-dollar space. The real-world assets (RWA) tokenization is expected to trigger the next phase of blockchain adoption, fueled by both retail traders and institutional investors. Moreover, most global regulators led by the G20 nations have been enacting and implementing friendly crypto and blockchain rules.

Bitfinex Announces First Tokenized Bonds

Bitfinex Securities has announced that Alternative, a Luxembourg-based security fund managed by Mikro Kapital, has raised about $5.2 million in USDT through the ALT2612 tokenized bond. Having successfully closed the first tokenized bond, Bitfinex highlighted that more issuance will follow the same path in the coming years. Notably, the ALT2612 has a 36-month tenor and a 10 percent coupon that will be denominated in Tether’s USDT. 

📢 Bitfinex Securities is proud to announce a successful raise of $5.2M USDt in one of the world’s first tokenized bond issuances!
✅ ALT2612 represents the first tokenized bond in the microcredit industry

Learn more in our official post:https://t.co/RaJDBf8S1Z pic.twitter.com/MIzP7gbU4N

— Bitfinex Securities (@BFXSecurities) December 20, 2023

According to the announcement, the ALT2612 will be issued on the Liquid Network, a side-chain of the Bitcoin blockchain that enables the use of smart contracts to facilitate the issuance of regulated security offerings. Furthermore, the Liquid network allows investors to seamlessly trade tokenized assets with deep liquidity and self-custody services. Notably, Bitfinex Securities and Mikro Kapital signed a strategic collaboration to enable the modernization of the microfinancing sector through the use of Tether USDT and EURT.

“This proof of concept issuance is a testament to the innovative spirit and collaborative effort between Bitfinex Securities and Mikro Kapital. We are excited to continue our collaboration with Mikro Kapital, and supporting them in future tokenized bond issuances,” Jesse Knutson, Head of Operations at Bitfinex Securities, noted.

Similar sentiments were echoed by Vincenzo Trani, the President and founder of Mikro Kapital, who added that small entrepreneurs can now access deep liquidity through the crypto asset industry in a regulated manner. The bridge between the traditional finance industry and the crypto space is expected to close significantly in the coming years.

“This proof of concept is more than just fundraising; it’s a significant stride towards integrating USDt in the microfinancing industry. Our ongoing challenge is to bridge the gap between traditional and crypto investors, educating them about the mutual benefits of high-quality securities and tokenization. Mikro Kapital’s role in this endeavor is indispensable,” Paolo Adoino, CEO of Tether and CTO of Bitfinex Securities, noted.

Market Outlook

The heightened use of blockchain technology to bring together global investors and business developers is expected to significantly widen the adoption of stablecoins and crypto assets. The RWA tokenization has attracted most institutions seeking to tap into the fast-growing web3 industry. As a result, Bitcoin and crypto liquidity is expected to significantly improve in the coming years, especially on layer one and two altcoins like Solana (SOL), Polygon (MATIC), Arbitrum (ARB), Cardano (ADA), and Ethereum (ETH), among many others. Ultimately, Bitcoin’s long-term prospects will continue to be bullish, with experts forecasting Bitcoin decoupling Gold in the total market capitalization. Moreover, the imminent spot Bitcoin ETF in the United States will trigger trillions of dollars to the crypto industry in the coming years.

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