In a move that expands their presence in the tokenized bond market, Bitfinex Securities announced the launch of two new tokenized bonds on the Liquid Network. This initiative comes as part of an ongoing partnership with Mikro Kapital, a Luxembourg-based microfinance group.
The bonds will have varying durations and attractive interest rates. Investors can choose between an 11-month bond with a 10% coupon rate or a 36-month bond offering a 13.5% coupon rate. These offerings are part of a planned monthly program, with the potential for future bonds featuring different terms.
The minimum investment for these bonds is set at $125,000, with the fundraising period running from July 3rd to July 31st. The total issuance aims to raise up to $10 million in USDT (Tether).
Leveraging Efficiency and Security with Liquid Network
This isn’t Bitfinex Securities’ first foray into tokenized bonds. In December 2023, their initial collaboration with Mikro Kapital using the Liquid Network proved successful, raising over $5 million in USDT.
The Liquid Network, a sidechain specifically designed for Bitcoin (BTC), offers several advantages for these tokenized bonds. It facilitates compliant issuance for companies while empowering investors with self-custody, peer-to-peer withdrawals, and trading of the securities.
“By leveraging the Liquid Network, we’re introducing innovative solutions that blend the strengths of traditional and crypto investments,” said Jesse Knutson, Head of Operations at Bitfinex Securities. “We’re excited to extend our partnership with Mikro Kapital and support their mission of bringing new financing options to the microfinance sector through these tokenized bonds.”
Funding Microfinance and Entrepreneurship
The capital raised through these bonds will be directed towards microfinance initiatives and projects within the sharing economy. These projects aim to empower small businesses and entrepreneurs in developing markets. Mikro Kapital’s securitization fund boasts a loan portfolio exceeding €300 million, supporting roughly 180,000 borrowers across 10 countries.
This launch coincides with Bitfinex Securities’ recent expansion beyond Kazakhstan. They established a presence in El Salvador in January 2024 and followed up by unveiling a $6.25 million tokenized debt offering for the Hampton by Hilton hotel project at the El Salvador airport in April.
Bitfinex Securities’ continued investment in tokenized bonds on the Liquid Network reflects the growing interest in this innovative financial instrument. These offerings provide attractive returns for investors while opening doors to new financing opportunities for companies in the microfinance and sharing economy sectors.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
