Bitfinex Securities Reports Tokenized Bond Issuance of $5.2 Million USDT

Bitfinex Securities Ltd., a platform known for security token trading, announced that the first tokenized bond issuance raised $5.2 million USDT.

First tokenized bond issuance

A securitization fund based in Luxembourg called ALTERNATIVE secured the funding. The Liquid Network side chain issued the ALT2612 bond, which offers a 10% annual return over 36 months and is denominated in USDT.

The network’s features, such as transfer restrictions and the creation of whitelists, allow issuers to fulfill regulatory requirements while granting investors the freedom to manage, withdraw, and trade their securities independently.

Jesse Knutson, Head of Operations at Bitfinex Securities, expressed enthusiasm about the fundraising. Knutson said, “This proof of concept issuance is a testament to the innovative spirit and collaborative effort between Bitfinex Securities and Mikro Kapital.”

The two entities agreed to delve into asset tokenization and incorporate of Tether tokens (USDt and EURt) in microfinancing earlier this year.

Paolo Adoino, CEO of Tether and CTO of Bitfinex Securities, noted, “This proof of concept is more than just a fundraise; it’s a significant stride towards integrating USDT in the microfinancing industry.”

More tokenized bonds in work

This is not the first instance where tokenized bonds have integrated with traditional finance. Bloomberg reported last week that Hong Kong is exploring another round of green bond issuance using distributed ledger technology. In February, the region successfully launched its first-ever tokenized green bond, raising HK$800 million under its Government Green Bond Programme (GGBP).

In October, Euroclear introduced its Digital Securities Issuance (D-SI) service to facilitate the issuance, distribution, and settlement of fully digital international securities, specifically Digitally Native Notes (DNN), using Distributed Ledger Technology (DLT). The Philippines followed suit in November with a notice of offering of ‘Tokenized Treasury Bonds’ due 2024 (TTBs).

Based on reports, KfW, a German development bank, plans to increase its focus on tokenized bonds in 2024.

Also Read: Philippines Initiates $179 Mln Tokenized Treasury Bonds Revolutionizing Digital Finance