Bitfinex Securities Announces Successful Tokenized Bond Issuance on Liquid Network

Bitfinex Securities has successfully raised over $5 million in USDT through the issuance of one of the world’s first tokenized bonds on the Liquid Network.

📢 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

The tokenized bond launched on Liquid Network denominated in USDT and using the ticker ALT2612, has a 36-month tenor with a 10% coupon. The Liquid Network is a sidechain of the Bitcoin blockchain that supports various tokenized assets, including stablecoins, security tokens, and digital collectibles. Liquid securities token offerings enable issuers to meet regulatory obligations while allowing investors the ability to self-custody, withdraw, and trade securities peer-to-peer.

This initiative is a result of collaboration with Mikro Kapital, a microfinancing firm managing a securitization fund named Alternative. Bitfinex Securities and Mikro Kapital had previously signed an agreement to explore asset tokenization and the use of USDT within the microfinancing industry. 

Mikro Kapital has deep expertise in conventional bond issuances and is a leader in the microfinancing industry, with a highly diversified lending book of 300,000 borrowers across 14 countries.

Paolo Adoino, CEO of Tether and CTO of Bitfinex Securities, emphasized the ongoing challenge of bridging the gap between traditional and crypto investors, educating them about the mutual benefits of high-quality securities and tokenization.

“This proof of concept is more than just a fundraise; 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.”

Bitfinex Securities’ Tokenized Bond Falls Short of Target, Extends Offering Period as ALT2611 Raises Only $1.5 Million

The Bitfinex Securities platform intends to help raise capital for issuers looking to list their tokenized securities on a public exchange. The platform offers access to a range of financial instruments, most notably blockchain-based bonds and stocks, as well as investment funds.

However, Bitfinex Securities’ first tokenized bond, the ALT2611 Tokenized Bond, has reportedly fallen short of its anticipated investment target. Despite the announcement of a $10 million target and a two-week offer period, only $1.5 million has been raised after two weeks. 

The tokenized asset, ALT2612, went live on November 15, and the target was set for two weeks after launch. However, the website indicates that the target has been extended by another two weeks, with just 15,000 ALT2611, or 15% of the goal reached. 

The distribution of securities is set to start approximately one week after the conclusion of the capital-raising process, and the bonds will mature over three years from the day of issuance. Also, the securities bond will be governed by and construed in accordance with the law of the Grand Duchy of Luxembourg.

The initial purchase size was set at a minimum of 125,000 USDT, with secondary market trading available in denominations of 100 USDT. The tokenized bond, issued in collaboration with Mikro Kapital, aims to raise a total of 10 million USDT by issuing 100,000 securitized ALT2611 tokens. 

It’s important to note that ALT2611 is not available to American citizens or persons present in the United States.

ALT2611 primarily assumes risks related to the debts and equities of microfinance companies, small financial institutions, leasing firms, banks, and credit cooperatives.