Tether's Bond Offering on Bitfinex Fails, Signaling a Disappointing Start for Capital Raises in the Company's New Era

Bitfinex’s Tokenized Bond Fails to Attract Expected Investment

Bitfinex’s tokenized bond, known as ALT2611 Tokenized Bond, has not received the desired investment and interest. The bond was launched on November 15 on Bitfinex Securities, a platform focused on listing tokenized real-world assets (RWA). However, after a two-week offer period, only $1.5 million of the $10 million target has been raised.

The target was set for two weeks after launch but has been extended by another two weeks as only 15% of the target has been reached so far. ALT2611 is a 36-month 10% coupon bond denominated in USDT and issued by Alternative, a Luxembourg-based securitization fund.

Tokenized Bonds Offer Advantages Over Traditional Bonds

Tokenized bonds are digital representations of traditional bonds issued on the blockchain. They provide advantages such as liquidity, accessibility, security, transparency, and 24/7 trading compared to their paper counterparts. The minimum initial purchase size for ALT2611 was 125,000 USDT, with secondary market trading in denominations of 100 USDT.

Underwhelming Response from Investors

The underwhelming response to Bitfinex’s tokenized bond has led to criticism from crypto trader Novacula Occami. He commented that the bond issue is a flop and that USDT will not dominate capital markets as anticipated by Tether’s CTO Paolo Ardoino. Ardoino had labeled the bond as a “new era for capital raises” and envisioned USDT becoming the underlying denomination asset of the new financial system.

Hot Take: Bitfinex’s Tokenized Bond Falls Short of Expectations

Bitfinex’s tokenized bond, the ALT2611 Tokenized Bond, has failed to generate the expected investment and interest. Despite being hailed as a “new era for capital raises,” the bond has only raised $1.5 million out of its $10 million target after a two-week offer period. The underwhelming response from investors has led to criticism and doubts about USDT’s dominance in capital markets. This highlights the challenges and uncertainties surrounding tokenized bonds and their adoption in the financial industry.