Bitfinex unveils two new tokenized bonds on its securities platform

New bonds offer 10% and 13.5% rates on 11 and 36-month terms.

Bitfinex unveils two new tokenized bonds on its securities platform

Key Takeaways

  • Bitfinex and Mikro Kapital's tokenized bonds feature competitive rates and monthly issuances.
  • The bonds are issued on the Liquid Network, enhancing security and compliance.

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Bitfinex Securities Ltd and Mikro Kapital today announced the launch of two new tokenized bond issues, offering durations of 11 and 36 months with coupon rates of 10% and 13.5% respectively. The bonds will be issued monthly on the Liquid Network, a Bitcoin side-chain, with a minimum raise of 500,000 Tether USD (USDT) and a cap of 10,000,000 USDT.

This initiative follows a Memorandum of Understanding signed last October to expand innovative financing in microfinancing sectors, and the proceeds from these bonds will fund microfinance and sharing economy projects, aiding small businesses and entrepreneurs in emerging markets. The capital raise is scheduled from July 3, 2024, to July 31, 2024.

Investment thresholds are set at a minimum of 125,000 USDT. Notably, both tokenized bonds are incorporated under the laws of the Grand Duchy of Luxembourg

“By leveraging the Liquid Network, we are introducing innovative financial solutions that merge the strengths of traditional and crypto investments,” said Jesse Knutson, Head of Operations at Bitfinex Securities. “We are thrilled to continue our ongoing collaboration with Mikro Kapital and support them in bringing new forms of financing to the microfinancing sector through this latest tokenized bond issuance.”

According to the announcement, Mikro Kapital’s ALTERNATIVE securitization fund currently supports 180,000 end-borrowers in 10 countries, totaling approximately €300 million. Mikro’s debut tokenized bond was completed in October 2023 and successfully raised over $5.2 million in USDT. Approximately 35% of the beneficiaries are women entrepreneurs in local and rural communities.

Moreover, Bitfinex’s tokenization platform recently conducted the offering of a “Hampton by Hilton” hotel at El Salvador International Airport, as reported by Crypto Briefing. At the time of writing, the offering raised $342,000 out of a $6.25 million goal.

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