The first tokenized bond to be issued on the Liquid Network raised more than $5 million in USDT +0.08%, according to a statement released by Bitfinex Securities on Wednesday.
The tokenized securities offering is the outcome of an agreement between Alternative Fund Management, a securitization fund managed by Mikro Kapital, a microfinancing organization. The USDT-denominated tokenized bond has a 36-month tenor with a 10% coupon and is traded under the ticker ALT2612.
Tokenized bonds issued by Bitfinex
Head of Operations at Bitfinex Securities Jesse Knutson remarked, “This proof of concept issuance is a testament to the innovative spirit and collaborative effort between Bitfinex Securities and Mikro Kapital.”
An agreement was reached earlier this year by Bitfinex Securities and Mikro Kapital to investigate the application of USDT in the microfinance sector as well as asset tokenization.
“Our ongoing challenge is to bridge the gap between traditional and crypto investors, educating them about the mutual benefits of high-quality securities and tokenization,” stated Paolo Adoino, CEO of Tether.
Security tokens, digital collectibles, and stablecoins are just a few of the tokenized assets that can be deployed on the Liquid Network, a sidechain of the Bitcoin blockchain.