Bitfinex has partnered with Mikro Kapital to introduce two new tokenized bond offerings on its securities platform. The bonds will have durations of 11 and 36 months, with coupon rates of 10% and 13.5% respectively. These bonds will be issued monthly on the Liquid Network, a Bitcoin side-chain, with a minimum raise of 500,000 Tether USD (USDT) and a maximum of 10,000,000 USDT.
The purpose of these bond issuances is to provide funding for microfinance and sharing economy projects, supporting small businesses and entrepreneurs in emerging markets. This initiative aligns with a Memorandum of Understanding signed in October to promote innovative financing in the microfinancing sectors. The capital raise for these bonds will take place from July 3 to July 31, 2024.
Investment thresholds for these tokenized bonds start at a minimum of 125,000 USDT, and both bonds are incorporated under the laws of the Grand Duchy of Luxembourg.
Jesse Knutson, Head of Operations at Bitfinex Securities, expressed how the use of the Liquid Network allows for the introduction of innovative financial solutions that combine traditional and crypto investments. He also emphasized the ongoing collaboration with Mikro Kapital in bringing new forms of financing to the microfinancing sector through these tokenized bonds.
Mikro Kapital’s ALTERNATIVE securitization fund currently supports around 180,000 end-borrowers in 10 countries, totaling approximately €300 million. In October 2023, Mikro Kapital successfully completed its first tokenized bond issuance, raising over $5.2 million in USDT. Notably, approximately 35% of the recipients of this fund are women entrepreneurs in local and rural communities.
In addition to the bond offerings, Bitfinex’s tokenization platform recently facilitated the offering of a “Hampton by Hilton” hotel at El Salvador International Airport. As of now, the offering has raised $342,000 towards its goal of $6.25 million.