Latest crypto and security news: Bitfinex Securities has launched the first bond denominated in USDT (Tether).
Bitfinex Securities is a subsidiary of the crypto exchange Bitfinex, and both are part of the iFinex group along with Tether itself.
Crypto and security: the USDT bond
The bond is a tokenised bond from Alternative called ALT2611.
It is a 36-month bond with a 10% coupon, issued by Mikro Kapital and denominated in USDT. It will be distributed from November.
Mikro Kapital is a Luxembourg-based company considered a world leader in the management of securities and tokens.
Alternative is a fund that acquires debt and equity risks of microfinance companies, small financial institutions, leasing companies, banks or credit unions.
It operates mainly in Italy, Romania, Moldova and emerging markets along the Silk Road.
ALT2611 is priced at USDT 100 with a minimum investment of USD 125,000. The bond can only be purchased in USDT and has an annual yield of 10% with coupons paid quarterly.
Alternatives and Mikro Kapital
Alternative is technically a securitisation fund established in the Grand Duchy of Luxembourg and managed by Mikro Kapital Management SA, a management company also established and registered in Luxembourg.
Mikro Kapital is a group of companies focused on impact investing, with a particular emphasis on emerging markets.
In particular, it offers microloans, SME loans, leasing, trade finance and working capital finance with the aim of supporting economic development by providing SMEs with access to capital.
The objective is to invest in microfinance organisations that require funding to support the expansion or start-up of their business.
The Alternative Fund raises funds primarily through the issuance of medium term fixed coupon bonds.
Bitfinex is the crypto exchange of the iFinex Group, which also includes Tether.
Bitfinex Securities is the security token subsidiary. Registered and licensed in the AIFC and El Salvador, it provides investors and issuers with a regulated, global solution for the issuance and secondary trading of tokenized securities.
It was the first global digital asset platform to be authorised and registered with the AIFC and the first to be licensed under El Salvador’s new digital asset regime.
Tether has been on a far-reaching path for some time now, with many initiatives that go far beyond simply issuing and managing the world’s largest stablecoin.
Recently, it has been involved in many collaborations, not least with the city of Lugano. It is also very active in El Salvador with Bitfinex Securities, which will issue the famous Volcano Bonds of the Salvadoran state.
Security tokens and the new USDT (Tether) crypto bond
Security tokens are nothing more than tokenized security tokens.
Bonds are securities, so when they are tokenized, as in the case of ALT2611, tokens are created that represent ownership and can be traded on exchanges such as Bitfinex Securities. In this case, the exchange is only with USDT.
As far as we know, ALT2611 will be the first tokenized bond that can be freely exchanged for USDT in a secondary market.
There has been a lot of talk about security tokens in recent years, but very few have been seen in the markets.
Bitfinex Securities, however, has Tether and the iFinex group on its side, so it may have an easier time getting these tokenised financial products onto the markets. In fact, USDT exchange copies can easily become very liquid.
According to Tether CEO Paolo Ardoino, a new era has begun for raising capital in the financial markets.