March 27, 2024
Bitfinex Launches Innovative Tokenized Bond: ALT2611
Latest Cryptocurrency News

Bitfinex Launches Innovative Tokenized Bond: ALT2611

Bitfinex Securities is ushering in a new era of capital raising with an exciting initiative – the launch of its first tokenized bond set to debut in November. This innovative offering, known as ALT2611, is a 36-month bond with a 10% coupon, denominated in Tether and issued by Mikro Kapital, a prominent player in the microfinance sector.

ALT2611 is no ordinary bond; it acquires the risks associated with the debt and equity of microfinance organizations, small financial institutions, leasing companies, and banks in countries like Italy, Romania, Moldova, and other emerging economies along the historic Silk Road trade network that connected Europe, the Middle East, and Asia.

Bitfinex’s Chief Technology Officer, Paolo Ardoino, views this inaugural tokenized bond as the dawn of a new era in capital raising. The Bitfinex Securities platform is designed to assist issuers in raising capital for their tokenized securities on a public exchange. It provides access to various financial instruments, including blockchain-based bonds and stocks, as well as investment funds. Businesses can utilize Bitfinex Securities to list their tokenized securities on the exchange or facilitate trading through the capital-raising platform. Furthermore, companies can tokenize their assets, such as debt and equity securities, enabling them to be traded on exchanges and between wallets using technology akin to cryptocurrencies.

Securities encompass a range of financial instruments that can be traded in both public and private markets. They fall into three main categories: debt, which includes loans that require periodic repayment; hybrids, combining elements of both debt and equity; and equity, providing ownership rights to holders. Bitfinex has specified that the tokenized bond, ALT2611, will launch at a price of 100 USDT, with a minimum investment threshold of 125,000 USDT. The distribution of securities will commence within one week after the capital raising process is completed, with a three-year maturity period from the issuance date. The bond will be governed by the law of the Grand Duchy of Luxembourg.

According to the official announcement, Mikro Kapital intends to issue 100,000 securitized tokens of ALT2611 to raise a total of 10 million USDT. Notably, ALT2611 is not available to U.S. citizens or individuals present in the U.S. or in any jurisdiction where offering or selling the bond would be deemed unlawful.

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