Bitfinex Securities Introduces Tokenized Bond on Platform
Bitfinex Securities has announced its first tokenized bond, ALT2611, which will be listed on the platform in November. The bond, issued by Mikro Kapital, is a 36-month, 10% coupon bond denominated in Tether (USDT). It will acquire risks associated with microfinance organizations and small financial institutions in various countries along the Silk Road.
The chief technology officer of Bitfinex, Paolo Ardoino, described the listing as the start of a new era for capital raises through deep liquid markets and stock/fond markets.
Bitfinex Securities Platform Overview
The Bitfinex Securities platform aims to assist issuers in raising capital for their tokenized securities. It provides access to blockchain-based bonds and stocks, as well as investment funds. Businesses can list their tokenized securities directly on the exchange or facilitate trading through the platform. They can also tokenize their goods, such as debt and equity securities, to enable transactions on exchanges and wallets using cryptocurrency technology.
Understanding Securities
Securities are financial instruments that can be traded and converted into different currencies in public and private markets. They fall into three categories: debt, hybrids, and equity. Debt securities are loans that require regular repayment. Hybrids combine elements of debt and equity. Equity securities grant ownership rights to holders.
Details of the Tokenized Bond
The tokenized bond will start trading at 100 USDT per bond with a minimum investment of 125,000 USDT. Distribution will commence within a week after the capital raise is completed, and the bond will have a maturity period of three years. The governing law for this security is the Grand Duchy of Luxembourg.
Mikro Kapital plans to issue 100,000 securitized tokens of ALT2611 to raise 10 million USDT. The bond is not available to U.S. citizens or individuals present in the U.S., or in any jurisdiction where its offer or sale would be unlawful.
Hot Take: Tokenized Bonds Open New Avenues for Capital Raises
The introduction of the first tokenized bond on Bitfinex Securities marks a significant milestone in capital raises. By leveraging deep liquid markets and stock/fond markets, this new financial ecosystem provides opportunities for businesses to access capital more efficiently. The use of Tether (USDT) as the underlying denomination asset further enhances the potential of this ecosystem. With the ability to tokenize goods like debt and equity securities, companies can tap into the benefits of cryptocurrency technology and expand their reach in global markets.
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