Crypto news: Bitfinex Securities launches two new tokenized bonds

Latest crypto news: today, Bitfinex Securities announced the launch of two new tokenized bonds.

These are traditional bonds that, however, could potentially offer higher returns.

The capital increase will begin on July 3, 2024, and will end on July 31, 2024.

Bitfinex Securities: the crypto collaboration with Mikro Kapital for the launch of tokenized bonds

This launch takes place in collaboration with Mikro Kapital.

In fact, it takes place within the framework of an ongoing program for the issuance of tokenized bonds by ALTERNATIVE, the securitization fund of Mikro Kapital. In turn, the latter is a microfinance financial group based in Luxembourg. 

Since Bitfinex Securities and Mikro Kapital announced a memorandum of understanding last October, this is the second time that tokenized bonds have been launched in this way.

This program offers an alternative investment opportunity with potentially higher returns compared to traditional fixed-income bonds. 

The two tokenized bonds launched by the crypto division Bitfinex Securities 

The program will present two different durations, each of which will offer competitive coupon payments for investors, and will include an 11-month bond with a coupon rate of 10% and a 36-month bond with a coupon rate of 13.5%.

The bonds will be issued monthly, with the goal of raising significant funds for microfinance and sharing economy projects in emerging markets.

In fact, this first issuance will be the first of a monthly program that will be launched later, and which has an option to be expanded to include other durations and coupons. The issuances aim for minimum relaunches of 500,000 USDT, with maximum sizes of 10,000,000 USD. The minimum investment size is 125,000 USDT.

Liquid Network

Just like the previous tokenized bonds of Mikro Kapital, this bond program will be issued on Liquid Network, a sidechain of Bitcoin specifically designed for the issuance of assets such as regulated security token offerings.

Liquid Network, in fact, allows issuers to apply restrictions on transfers and create whitelists to ensure compliance with regulatory obligations while still allowing investors to hold tokens in self-custody, and to withdraw and trade them in a peer-to-peer manner. 

The Responsabile delle operazioni di Bitfinex Securities, Jesse Knutson, ha dichiarato: 

“Leveraging Liquid Network, we are introducing innovative financial solutions that combine the strengths of traditional and crypto investments. We are excited to continue our ongoing collaboration with Mikro Kapital and support them in bringing new forms of financing to the microfinance sector through this latest issuance of tokenized bonds.” 

Mikro Kapital 

The tokenizzazione of Mikro Kapital’s debut bond was completed in October 2023 and successfully raised over 5.2 million dollars in USDT.

According to the company, it was the first ever tokenized bond for microcredit. 

ALTERNATIVE is the securitization fund of Mikro Kapital, and it has a robust and diversified loan portfolio that currently supports 180,000 final borrowers in 10 countries, for a total of approximately 300 million euros. About 35% of the beneficiaries are women entrepreneurs in local and rural communities.

The initiative by Bitfinex Securities and Mikro Kapital is aimed at the growth of the microfinance sector through innovative financing, so much so that the proceeds from the latest issuance will be used to invest in microfinance and sharing economy projects to support small businesses and entrepreneurs in emerging markets. 

Bitfinex Securities 

Bitfinex Securities was founded in 2021, with the goal of applying the technological advantages of the digital asset sector to the global capital markets. 

Its platform allows real-time settlements, and trading 24 hours a day, 7 days a week, 365 days a year, as well as access to global liquidity and the ability to self-custody assets.

Bitfinex Securities is part of the iFinex group, which also includes the crypto exchange Bitfinex and Tether, the company that issues and manages the world’s leading stablecoin (USDT).