Bitfinex Unveils Tether-Denominated Bond Set to Debut in November
Bitfinex Securities has announced its first-ever tokenized bond set to debut in November. This bond, denominated in Tether and offering a coupon rate of 10% over a period of 36 months, aims to enhance the process of rais...
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Bitfinex Securities has announced its first-ever tokenized bond set to debut in November. This bond, denominated in Tether and offering a coupon rate of 10% over a period of 36 months, aims to enhance the process of raising capital.
Dubbed ALT2611, the tokenized bond is set to acquire risks associated with the debt and equity of microfinance organizations, small financial institutions, leasing companies, and banks across Italy, Romania, Moldova, and other developing nations along the historic Silk Road, the crypto exchange said.
Bitfinex Lures Investors with Lucrative Returns
Paolo Ardoino, the Chief Technology Officer at Bitfinex and the incoming CEO of Tether praised this initiative, describing it as the dawn of a new era in the world of finance. Bitfinex Securities aims to create liquid markets with the new offering, redefining the dynamics of stock and fund markets.
Exciting!This is the first bond listed on Bitfinex Securities. A new era for capital raises through deep liquid markets and stock/fond markets has begun.Furthermore $USDt will become the underlying denomination asset of this new financial ecosystem.And yes. It leverages… https://t.co/ekXj3gY7Xj
— Paolo Ardoino 🍐 (@paoloardoino) October 25, 2023Bitfinex Securities said it is committed to helping issuers to access public exchanges with their tokenized securities. This platform facilitates the trading of blockchain-based bonds, stocks, and investment funds. Businesses can list their tokenized securities directly on Bitfinex or utilize Bitfinex Securities to facilitate trades.
Besides that, Bitfinex Securities offers an opportunity for companies to tokenize their goods, debt, and equity securities, Cointelegraph reported. This allows the trading of such products on exchanges and between wallets using technology akin to that which underpins cryptocurrencies to expand the scope of financial transactions.
A Minimum Investment Threshold of 125,000 USDT
ALT2611 will be available for trading at an initial price of 100 USDT, with a minimum investment threshold of 125,000 USDT. Security distribution will commence within a week after the raising of capital is complete. The tokenized bond offers a three-year maturity period from the issuance date. The bond will adhere to the legal framework of the Grand Duchy of Luxembourg.
Mikro Kapital will issue 100,000 securitized tokens of ALT2611 to raise 10 million USDT. Notably, ALT2611 will not be available to US citizens, individuals within the US, or any other jurisdiction where the offer or sale would be considered unlawful.
Recently, iFinex Inc., the parent company of Bitfinex, announced a share buyback amounting to $150 million. This initiative is intended to provide relief to victims of the 2016 hack. The share buyback initiative placed iFinex at a valuation of $1.7 billion.
Additionally, Bitfinex has introduced zero-fee trading for market takers on its peer-to-peer trading platform in Argentina, Colombia, and Venezuela. This move allows crypto enthusiasts in these regions to buy and sell digital assets at market prices without incurring transaction fees.
This article was written by Jared Kirui at www.financemagnates.com.Why this matters
This cryptocurrency story adds another data point to the current market tape and is useful when read alongside nearby source coverage.
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