Bitfinex Securities Ltd., a platform known for trading security tokens, announced that the first issuance of tokenized securities raised $5.2 million in USDT.
First issuance of tokenized bonds
A Luxembourg-based securitization fund called ALTERNATIVE guaranteed the financing. The Liquid Network sidechain issued the security ALT2612, which offers a 10% annual return for 36 months and is denominated in USDT.
Network features such as transfer restrictions and whitelisting allow issuers to comply with regulatory requirements while giving investors the freedom to manage, withdraw and trade their securities independently.
Jesse Knutson, chief operating officer of Bitfinex Securities, expressed his excitement about the fundraising. Knutson said: “This proof-of-concept issuance is a testament to the innovative spirit and collaborative effort between Bitfinex Securities and Mikro Kapital.”
The two entities agreed to deepen asset tokenization and incorporate Tether tokens (USDt and EURt) into microfinance earlier this year.
Paolo Adoino, CEO of Tether and CTO of Bitfinex Securities, said: “This proof of concept is more than just a fundraising; “It is an important step forward towards the integration of USDT in the microfinance industry.”
More tokenized securities in operation
This is not the first case of tokenized securities being integrated into traditional finance. Bloomberg reported last week that Hong Kong is exploring another round of green bond issuance using distributed ledger technology. In February, the region successfully launched its first tokenized green bond, raising HK$800 million under its Government Green Bond Program (GGBP).
In October, Euroclear introduced its Digital Securities Issuance (D-SI) service to facilitate the issuance, distribution and settlement of fully digital international securities, specifically Digital Native Notes (DNN), using distributed ledger technology (DLT). The Philippines followed suit in November with an offering notice for “tokenized Treasury bonds” due 2024 (TTB).