December 20 The first token bond to raise over $5 million through Bitfinex Securities
In media releases
Astana, Kazakhstan, December 20, 2023 – Bitfinex Securities Ltd, (https://www.bitfinex.com/securities/), which provides listing and trading services for securities tokens, is pleased to announce that it has successfully raised $5,200,100 in one of the world’s first tokenized bond issuances. .
The raise by ALTERNATIVE, a Luxembourg-based securitization fund run by microfinance leader Mikro Kapital (https://mikrokapital.com), officially closed earlier this week. ALT2612 represents the first token bond in the microcredit industry and one of the first token bonds in the world. Mikro Kapital's deep experience in traditional bond issuances paved the way for its first token bond issuance, ALT2612 with a maturity of 36 months with a coupon of 10%, denominated in US dollars.
Mikro Kapital, a leader in the microfinance industry, has a highly diversified lending book of 300,000 borrowers in 14 countries with a total value of more than €1 billion.
The bonds were issued on the Liquid Network, a sidechain of the Bitcoin blockchain, which is specifically designed to issue assets such as regulated security token offerings. With the ability to impose transfer restrictions and create whitelists, liquid securities token offerings allow issuers to meet their regulatory obligations while allowing investors the ability to self-custodial, withdraw, and even peer-to-peer securities trading.
Jesse Knutson, COO of Bitfinex Securities, commented on this historic event, saying:: “This proof of concept issuance is a testament to the innovative spirit and collaborative effort between Bitfinex Securities and Mikro Kapital. We are excited to continue our collaboration with Mikro Kapital and support them in future token bond issuances.
Earlier this quarter, Mikro Kapital and Bitfinex Securities signed an agreement to explore asset tokenization and the use of US dollar-backed Tether tokens (USDt) and Euro-backed Tether tokens (EURt) in the microfinance industry.
This strategic collaboration between Bitfinex Securities and Micro Kapital embodies both companies' commitment to innovation and collaborative growth in the microfinance sector, bringing new forms of financing to the industry.
Commented Paolo Adoino, CEO of Tether and CTO at Bitfinex Securities: “This proof of concept is more than just a fundraiser; It is a big step towards integrating USDt into the microfinance industry. Our ongoing challenge is to bridge the gap between traditional investors and crypto investors, and educate them about the mutual benefits of high-quality securities and tokenization. Micro Capital's role in this endeavor is indispensable.
Mikro Kapital is interested in expanding the adoption and practical use of cryptocurrencies in the many jurisdictions in which it operates and opening a dialogue with institutional investors.
said Vincenzo Trani, President and Founder of Micro Capital: “The success of our first tokenized bond issuance was made possible thanks to continuous technical support and the extensive network of Bitfinex Securities investors. We are excited to be a leader in bringing cryptocurrencies to the world of microfinance. This will allow us to respond efficiently and quickly to the needs of small entrepreneurs.”
About Bitfinex Securities
Bitfinex Securities, with entities registered and licensed in the AIFC and El Salvador, offers a regulated, efficient and global solution for tokenized securities issuances and secondary market trading. Bitfinex Securities is proud to be the first global digital asset platform licensed and registered with the AIFC, and the first to be licensed under El Salvador's new digital asset regime.
Media contact for Bitfinex Securities
About Micro Capital
Micro Capital, founded in Luxembourg in 2008, focuses on impact finance and microfinance, and manages securitization funds in Luxembourg that offer investments in low-risk, creditworthy small and medium-sized enterprises in emerging countries.
Media contacts for Mikro Kapital: