Bitfinex Securities, a platform specializing in listing tokenized securities linked to real-world assets, is set to debut its inaugural tokenized bond, ALT2611, scheduled for listing in November. ALT2611 is a 36-month bond with a 10% coupon rate, denominated in Tether (USDT) and issued by Mikro Kapital, a global leader in microfinance.
Bitfinex securities unveil ALT2611
This innovative development by Bitfinex Securities represents a significant step forward in the world of finance, offering a new dimension for capital raises. ALT2611 isn’t just an ordinary bond; it’s tokenized, which means it leverages blockchain technology to create a more accessible, liquid, and efficient market for securities. Tokenization, in essence, involves converting traditional financial assets, like stocks and bonds, into digital tokens on a blockchain. This approach allows for greater flexibility in trading, increased accessibility, and potential cost savings in the management and distribution of these assets.
In the case of ALT2611, it’s not just a bond in the traditional sense. This tokenized bond will carry with it the risks associated with the debt and equity of microfinance organizations, small financial institutions, leasing companies, and banks across Italy, Romania, and Moldova, as well as in emerging markets in the Middle East and Asia. Paolo Ardoino, the Chief Technology Officer of Bitfinex, heralded this milestone as the beginning of a new era for capital raising through liquid markets. The platform is designed to facilitate capital raising for entities seeking to list their tokenized securities on public exchanges.
Bitfinex Securities goes beyond just tokenized bonds; it offers a diverse range of financial instruments, including blockchain-based bonds and stocks, as well as investment funds. It provides businesses the opportunity to list their tokenized securities directly on the exchange or to use the platform for facilitating the trading of these securities. Furthermore, the platform can be instrumental in enabling companies to transact their products on exchanges and between wallets, leveraging similar technology as cryptocurrencies.
The details behind the ALT2611 tokenized bond
This development means that not only traditional financial assets but also goods such as debt and equity securities can be tokenized and traded on this innovative platform. Securities, for those less familiar with the term, encompass a broad array of financial instruments that can be bought and sold in both public and private markets. There are three primary categories of securities: debt, which represents loans that must be repaid at regular intervals; hybrids, which combine elements of both debt and equity; and equity, which grants ownership rights to the holders.
Bitfinex Securities has outlined some key details for ALT2611, setting the starting trading price at 100 USDT, with a minimum investment amount of 125,000 USDT. The distribution of the securities will commence within one week after the capital raise’s completion, with a maturity period spanning three years from the day of issuance. The bond is subject to the legal jurisdiction of the Grand Duchy of Luxembourg. According to the official announcement, Mikro Kapital plans to issue 100,000 securitized tokens of ALT2611 to raise 10 million USDT.
It is important to note that this offering is not available to U.S. citizens or individuals present in the U.S., or in any other jurisdiction where such an offer or sale would be unlawful. By leveraging blockchain technology and tokenization, this platform is poised to revolutionize capital raises, offering increased accessibility, liquidity, and efficiency for a broad spectrum of securities, including bonds and stocks. The benefits of this innovative approach extend not only to issuers but also to investors looking to participate in the evolving landscape of financial markets.
