Bitfinex Makes History As It Issues First Tokenized Bond, Raises 5M In USDT

Bitfinex Securities, which offers listing and trading services for security tokens, announced it has issued the world's first tokenized bond on Liquid Network and raised more than $5 million in Tether (USDT).

The tokenized bond, which uses the ticker ALT2612 and is denominated in USDT, was issued on Liquid Network – a Bitcoin layer-2 solution. It has a 36-month tenor with a 10% coupon. The tokenized security offering was made possible as part of a collaboration between Bitfinex Securities and microfinancing firm Mikro Kapital, which will handle the securitization of the fund.

Mikro Kapital is considered a leader in the microfinancing industry, with its diversified lending book of 300,000 borrowers across 14 countries, collectively worth over 1 billion euros ($1.09 billion).

"The raise by ALTERNATIVE, a Luxembourg-based securitization fund managed by microfinancing leader Mikro Kapital, officially closed earlier this week. ALT2612 represents the first tokenized bond in the microcredit industry and one of the world's first tokenized bonds. Mikro Kapital's deep expertise in conventional bond issuances paved the way for their debut issue of a tokenized bond, ALT2612, which has a 36-month tenor with a 10% coupon, denominated in USDT," Bitfinex said in a news release shared with International Business Times.

"This proof of concept issuance is a testament to the innovative spirit and collaborative effort between Bitfinex Securities and Mikro Kapital. We are excited to continue our collaboration with Mikro Kapital, and supporting them in future tokenized bond issuances," said Jesse Knutson, Bitfinex's head of operations.

Bitfinex Securities shook hands with Mikro Kapital to explore asset tokenization and the use of USD-backed Tether tokens (USDt) and Euro-backed Tether tokens (EURt) in the microfinancing industry.

"This proof of concept is more than just a fundraise; it's a significant stride towards integrating USDt in the microfinancing industry. Our ongoing challenge is to bridge the gap between traditional and crypto investors, educating them about the mutual benefits of high-quality securities and tokenisation. Mikro Kapital's role in this endeavor is indispensable," added Paolo Adoino, CEO of Tether and CTO of Bitfinex Securities.

Mikro Kapital president and founder Vincenzo Trani said the team was excited to be the forerunners in bringing cryptocurrency into microfinance.

"The success of our first tokenized bond issue was made possible thanks to the constant technical support and the extensive network of investors of Bitfinex Securities. We are excited to be pioneers in bringing cryptocurrency to the world of microfinance. This will allow us to respond efficiently and quickly to the needs of small entrepreneurs," Trani added.