Notably, this isn’t the first time Bitfinex Securities is taking a swipe at tokenized bonds.
Bitfinex Securities has tapped Alternative, the securitization fund of Mikro Kapital, to help it launch two new tokenized bonds. That is according to a report by The Block. Per the announcement, the bonds, slated for launch on July 3rd, will offer investors a chance to participate in microfinance while also enjoying the benefits of blockchain technology.
The bonds come in two parts. There is an 11-month option with a 10% coupon rate and another 36-month option with a 13.5% coupon rate. In a company statement, Bitfinex has confirmed that it plans to use both offerings to raise $10 million in USDT (Tether). While the minimum investment is pegged at $125,000, Bitfinex says it will use the capital raised to support small businesses and entrepreneurs in developing markets. That is, through microfinance and sharing economy projects.
Meanwhile, it might be worth mentioning that this isn’t the first time Bitfinex Securities is taking a swipe at tokenized bonds. In December 2023, the firm successfully launched its initial tokenized bond offering. Even at that time, the firm recruited the help of Mikro Kapital, and was able to raise over $5 million. Both offerings are powered by the Liquid Network, a Bitcoin sidechain specially designed for issuing assets like security tokens.
The Liquid Network does not only provide a secure and efficient platform for tokenization. It also enables compliant issuances while offering investors several other benefits. These benefits range from self-custody to the ability to withdraw tokens, and carry out peer-to-peer (p2p) trading of securities.
Bitfinex Securities Hails Mikro Kapital Collaboration, Eyes New Era of Microfinance
Meanwhile, Bitfinex has expressed pleasure in the continued partnership that it enjoys with Mikro Kapital, which has been yielding favorable results. The company’s head of operations, Jesse Knutson, said in a part statement:
“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.”
Knutson added that the partners are fully invested in ensuring that they proffer “innovative financial solutions”. Such solutions are capable of bridging the gap between traditional and crypto investments.
With their latest tokenized bonds, Bitfinex Securities and Mikro Kapital might be on the verge of creating a new approach to microfinance. This approach has the tendency to unlock new funding sources for small businesses in developing economies while also offering investors attractive returns and a unique investment opportunity.
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