Bitfinex Securities Raises $5.2 Million in Token Microcredit Bond
Bitfinex Securities Ltd, a pioneer in the tokenization sector, has successfully raised $5.2 million in one of the world’s first tokenized bond issuances. This milestone was achieved through a collaboration with ALTERNATIVE, a securitization fund based in Luxembourg managed by Mikro Kapital. The bond, called ALT2612, has a duration of 36 months with a coupon of 10% and is denominated in USDt.
The Role of Liquid Network in the Bitcoin Blockchain
The tokenized bond was launched on the Liquid Network, a side-chain of the Bitcoin blockchain designed for regulated security token offerings. This infrastructure provides the necessary framework for compliance with regulatory obligations and enables self-custody and peer-to-peer trading functionalities.
Jesse Knutson, head of Bitfinex Securities operations, praised the collaboration between Bitfinex Securities and Mikro Kapital, emphasizing the proof-of-concept nature of this issuance. The partnership demonstrates their commitment to exploring new frontiers in the microfinance sector.
The Significance of Integrating Digital Assets into Traditional Finance
This collaboration between Mikro Kapital and Bitfinex Securities represents a transformative moment in the microfinance sector. By integrating digital assets like USD-backed Tether tokens (USDt) into traditional financial structures, they are bridging the gap between traditional investors and crypto. This initiative aims to educate investors about the benefits of high-quality securities and tokenization.
Extending Cryptocurrency Adoption in Microfinance
Mikro Kapital plans to expand the adoption of cryptocurrencies in all jurisdictions it operates. With the technical support of Bitfinex Securities and its network of investors, Mikro Kapital aims to respond quickly to the needs of small entrepreneurs in the world of microfinance.
Hot Take: A New Era of Financing Possibilities
The successful tokenized bond issuance by Bitfinex Securities and Mikro Kapital marks a transformative moment in the microfinance sector. This achievement paves the way for future tokenized bond offerings and signifies the convergence between traditional finance and blockchain technology. It demonstrates how innovation and collaboration can unlock new financing possibilities and shape the decentralized future enabled by blockchain technology.
By
By
By