The "exciting" idea, according to Paolo Ardoino, Bitfinex chief technical officer and incoming Tether CEO, represents the start of a new era in capital raising.
Bitfinex Securities, a platform focused on selling real-world tokenized securities, has announced the launching of its first tokenized bond in November. The ALT2611 tokenized bond is a 36-month, 10% coupon bond issued in Tether USDT $1.00 and distributed by Mikro Kapital, a global microfinance provider.
According to Bitfinex Securities, the tokenized bond ALT2611 will take on risks related to the debt and equity of banks, leasing companies, small financial institutions, and microfinance organizations in Italy, Romania, and Moldova, as well as in other developing countries along the Silk Road—a historic network of Eurasian trade routes that connected Europe, the Middle East, and Asia.
The first tokenized bond listed on the securities platform, according to Bitfinex Chief Technology Officer Paolo Ardoino, marked the start of a new age for capital raises "through deep liquid markets and stock/fond markets."
The Bitfinex Securities platform is designed to assist issuers seeking to list their tokenized securities on a public exchange in raising finance. The platform allows users to access a variety of financial instruments, including blockchain-based bonds and equities, as well as investment funds.
Businesses can use Bitfinex Securities to directly list their tokenized securities on the exchange or to facilitate trade through the capital-raising platform. Companies can also tokenize their goods, like as debt and equity securities, and allow them to be exchanged on exchanges and across wallets using the same or identical technology as cryptocurrencies.
Securities are financial products that can be exchanged in both public and private markets and converted into other currencies. Securities are classified into three types: debt (such as loans that must be repaid on a regular basis), hybrids (which combine parts of debt and equity), and equity (which offers holders ownership rights).
The tokenized bond will begin trading at a price of 100 USDT, with a minimum investment of 125,000 USDT, according to Bitfinex. The security distribution will begin one week after the capital raise is completed, with a three-year maturity period from the date of issuance. The securities bond will be governed and interpreted in accordance with Grand Duchy of Luxembourg legislation.
Mikro Kapital will issue 100,000 ALT2611 securitized tokens to raise $10 million USDT, according to the official release. ALT2611 is not offered or made available to U.S. citizens or persons resident in the United States, or to anyone else in any jurisdiction where such an offer or sale would be illegal.
Bitfinex Securities' launch of a tokenized bond marks an exciting step in the evolution of the financial industry. By utilizing blockchain technology, they are not only modernizing the issuance and management of bonds but also increasing accessibility and transparency. As more players in the financial world explore tokenization, traditional finance is at the cusp of a transformation that promises efficiency, cost-effectiveness, and a new era of investing. Bitfinex Securities' move is a testament to the disruptive potential of blockchain technology in the realm of finance, setting the stage for a more inclusive and dynamic financial landscape.