Bitfinex Securities has made an announcement regarding the successful tokenization of a bond by Alternative, a Luxembourg-based fund manager. The bond, known as ALT2612, raised approximately $5.2 million in USDT and has a maturity period of 36 months. This achievement is expected to have a significant impact on the global economy, as it unlocks opportunities that were previously limited by geopolitical differences.
The cryptocurrency industry has played a vital role in promoting the use of blockchain technology, which has now become a trillion-dollar space. The tokenization of real-world assets (RWA) is considered the next phase of blockchain adoption, fueled by the participation of both retail traders and institutional investors. Additionally, global regulators, particularly those from G20 nations, have been actively implementing crypto and blockchain-friendly regulations.
As the first tokenized bond issuance, the ALT2612 has paved the way for future similar initiatives. Bitfinex Securities, in collaboration with Mikro Kapital, successfully closed this bond, marking a significant milestone in the microcredit industry. The tenor of ALT2612 is 36 months, and it offers a 10 percent coupon denominated in Tether’s USDT.
The bond will be issued on the Liquid Network, a side-chain of the Bitcoin blockchain that enables the use of smart contracts for regulated security offerings. This platform also facilitates seamless trading of tokenized assets with deep liquidity and self-custody services. Bitfinex Securities and Mikro Kapital have signed a strategic collaboration to modernize the microfinancing sector using Tether USDT and EURT.
Jesse Knutson, Head of Operations at Bitfinex Securities, expressed excitement about the collaboration with Mikro Kapital and the future tokenized bond issuances. Vincenzo Trani, President and founder of Mikro Kapital, highlighted the opportunity for small entrepreneurs to access deep liquidity through regulated means in the crypto asset industry. The convergence of traditional finance and the crypto space is expected to accelerate in the coming years.
Paolo Adoino, CEO of Tether and CTO of Bitfinex Securities, emphasized the significance of this proof of concept issuance in integrating USDt into the microfinancing industry. The aim is to bridge the gap between traditional and crypto investors, educate them about the benefits of high-quality securities and tokenization, and establish Mikro Kapital’s indispensable role in this endeavor.
The use of blockchain technology to connect global investors and business developers is anticipated to drive the adoption of stablecoins and crypto assets. RWA tokenization has attracted institutional interest, leading to improved liquidity in Bitcoin and other altcoins like Solana, Polygon, Arbitrum, Cardano, and Ethereum. Experts predict a bullish long-term outlook for Bitcoin, with expectations of decoupling from Gold in terms of total market capitalization. Additionally, the impending spot Bitcoin ETF in the United States is anticipated to bring trillions of dollars into the crypto industry in the coming years.