The cryptocurrency exchange Bitfinex’s affiliate, Bitfinex Securities, which deals with the tokenization of corporate assets, announced on December 20 that it had raised over $5 million in USDT for the first tokenized bond to be issued on the Bitcoin ecosystem-built Liquid Network. With this step, the company has achieved a significant milestone.
A Noteworthy Move from Bitfinex Securities
The tokenized security offering emerges as a result of a partnership with microfinance firm Mikro Kapital, which manages a security fund called Alternative. This bond uses the tokenized bond abbreviation ALT2612 denominated in USDT and has a 36-month term with a 10% coupon. Jesse Knutson, the Operations Director of Bitfinex Securities, stated in his remarks regarding the matter:
“This proof of concept issuance is a testament to the innovative spirit and collaborative effort between Bitfinex Securities and Mikro Kapital.”
Earlier this year, Mikro Kapital and Bitfinex Securities took the first step by signing an agreement to explore both asset tokenization and the use of USDT in the microfinance sector. Tether CEO Paolo Ardoino commented on this step:
“Our ongoing challenge is to bridge the gap between traditional and crypto investors and educate them about the mutual benefits of high-quality securities and tokenization.”
The Liquid Network, a sidechain of the Bitcoin blockchain ecosystem, supports multiple types of tokenized assets, including stablecoins, security tokens, and NFT collections.
Blockchain Space and Traditional Finance Sector
Efforts towards tokenization of real-world assets continue to grow day by day. In particular, the process that started with central bank digital currency (CBDC) projects has led to significant partnerships between blockchain companies and central bank officials of various countries.
Especially in the process handled with blockchain technology, the primary goal of companies and official institutions is to provide a reliable environment for investors. In this environment, investors can carry out transactions faster and with lower costs compared to traditional finance platforms.
