Bitfinex Securities announces tokenized bond

Paolo Ardoino, Bitfinex chief technology officer and incoming Tether CEO, said the “exciting” initiative marks the beginning of a new era in capital raising.

Bitfinex Securities, a platform focused on listing real-world tokenized securities, has announced its first tokenized bond that will be listed in November. The new tokenized bond called ALT2611 is a 36-month, 10% coupon bond denominated in Tether (USDT) and issued by Mikro Kapital, a global leader in microfinance. 

Bitfinex Securities said the tokenized bond ALT2611 would acquire risks associated with the debt and equity of microfinance organizations, small financial institutions, leasing companies and banks in Italy, Romania and Moldova, as well as in other developing nations along the Silk Road, which was a historical network of Eurasian trade routes connecting Europe, the Middle East and Asia.

Bitfinex chief technology officer Paolo Ardoino called the first tokenized bond on the securities platform the beginning of a new era for capital raises “through deep liquid markets and stock/fond markets.”

The Bitfinex Securities platform is intended 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.

Businesses can use Bitfinex Securities to list their tokenized securities directly on the exchange or to facilitate trading the securities through the capital-raising platform. Companies can also allow their products to be transacted on exchanges and between wallets using the same or comparable technology as cryptocurrencies by tokenizing their goods, such as debt and equity securities.

Securities are financial instruments that can be traded and converted into other currencies in both public and private markets. There are three categories of securities: debt, such as loans that must be repaid on a regular basis; hybrids, which are a mix of elements of debt and equity; and equity, which grants ownership rights to holders.

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Bitfinex said the tokenized bond would start trading at the price of 100 USDT, with a minimum investment amount of 125,000 USDT. The security distribution will begin within one week after the completion of the capital raise with a three-year maturity period from the day of issuance. The securities bond will be governed by and construed in accordance with the law of the Grand Duchy of Luxembourg.

According to the official announcement, Mikro Kapital will issue 100,000 securitized tokens of ALT2611 to raise 10 million USDT. ALT2611 is not offered or made available to U.S. citizens or persons present in the U.S. or in any other jurisdiction where the offer or sale would be unlawful.

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