The world’s first token microcredit bond is successfully announced by Bitfinex Securities.

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Bitfinex Securities announces the success of the $5.2 million fundraising through the world’s first microcredit token bond.

Facilitated by ALTERNATIVE, a securitization fund based in Luxembourg managed by Mikro Kapital, this historic result announces a new era in the convergence between traditional finance and blockchain technology.

Bitfinex Securities successfully raises $5.2 million in the world’s first token microcredit bond

Bitfinex Securities Ltd, a pioneer in the tokenization sector, has achieved a significant milestone by successfully raising 5,200,100 USDt in one of the world’s first tokenized bond issuances.

This innovative enterprise, facilitated by ALTERNATIVE, a securitization fund based in Luxembourg managed by Mikro Kapital, a leader in the microcredit sector, marks the birth of the first tokenized bond in the microcredit sector.

The tokenized bond of ALTERNATIVE, called ALT2612, has a duration of 36 months with a coupon of 10%, denominated in USDt. 

By leveraging Mikro Kapital’s deep experience in conventional bond issuances, this strategic move highlights the evolution towards the adoption of blockchain technology in traditional financial instruments.

Mikro Kapital, a prominent player in the microfinance sector, boasts a diversified loan portfolio that includes 300,000 borrowers in 14 countries, with a cumulative value exceeding 1 billion euros. 

The success of the ALT2612 issuance represents a crucial moment in the fusion of traditional finance with the innovation brought by blockchain and tokenization.

The importance of Liquid Network in the Bitcoin blockchain

The tokenized bond has been launched on the Liquid Network, a Bitcoin blockchain side-chain specifically created for the issuance of regulated security token offerings. 

This infrastructure provides the necessary framework for the application of transfer restrictions and the creation of whitelists, ensuring compliance with regulatory obligations and allowing investors to have self-custody and peer-to-peer trading functionalities.

Jesse Knutson, head of Bitfinex Securities operations, praised the collaborative effort between Bitfinex Securities and Mikro Kapital, emphasizing the proof-of-concept nature of this issuance. 

The partnership demonstrates the innovative spirit that drives both entities to explore new frontiers in the microfinance sector.

At the beginning of this quarter, Mikro Kapital and Bitfinex Securities formalized their collaboration through an agreement that explores the tokenization of assets and the use of USD-backed Tether tokens (USDt) and euro-backed Tether tokens (EURt) in the microfinance sector.

This forward-thinking initiative indicates a commitment to integrate digital assets into traditional financial structures.

Paolo Adoino, CEO of Tether and CTO of Bitfinex Securities, highlighted the broader significance of this proof of concept, emphasizing its role in bridging the gap between traditional investors and crypto.

The integration of USDt in the microfinance sector represents a step forward towards educating investors about the mutual benefits of high-quality securities and tokenization.

Mikro Kapital, not content with this innovative result, expresses interest in extending the adoption of cryptocurrencies in all the jurisdictions in which it operates. Vincenzo Trani, president and founder of Mikro Kapital, acknowledges the indispensable technical support of Bitfinex Securities and its extensive network of investors. 

This success positions Mikro Kapital as a pioneer in bringing cryptocurrencies into the world of microfinance, allowing for a quick response to the needs of small entrepreneurs.

Conclusions

In conclusion, the collaboration between Bitfinex Securities and Mikro Kapital represents a transformative moment in the microfinance sector, combining innovation and collaboration to usher in a new era of financing possibilities. 

This historic result paves the way for future tokenized bond issuances, marking the convergence between traditional finance and the decentralized future enabled by blockchain technology.