Bitfinex Securities Launches New Public Offering for RWA Tokens

KEY TAKEAWAYS

• Bitfinex introduces US Treasury tokenized bonds under El Salvador's regulatory framework.
• Investors can trade $USTBL tokens, providing exposure to short-term US Treasury Bills, with a 5.02% annual yield.
• $USTBL operates on the Bitcoin Layer-2 blockchain, enabling instant settlement, approved wallet withdrawals, and over-the-counter trading.

On Tuesday, Bitfinex Securities, a tokenization company linked to the Bitfinex exchange, announced the launch of a new public offering for real-world assets (RWA) tokens.

This new launch introduces tokenized US Treasury Bills (T-bills) under the legal framework of El Salvador.

This way, Bitfinex aims to broaden access to regulated investments in tokenized assets.

Tokenized Treasury Bills

NexBridge Digital Financial Solutions, a digital asset issuer based in El Salvador, will handle the issuance of $USTBL tokens.

$USTBL will expose investors to short-term US T-bills denominated in US dollars.

Bitfinex Securities plans to raise at least $30M in the initial token offering from November 19 to 29.

Bitfinex announced it would create RWA tokens on Liquid Network, a Bitcoin Layer-2 blockchain maintained by Blockstream.

The $USTBL token offers an annual yield of 5.02% until maturity. Bitfinex Securities will allocate the proceeds to the iShares Treasury Bond 0-1 year UCITS exchange-traded fund (ETF), which tracks a US government bond index.

Although $USTBL is issued on Liquid Network, investors can only purchase it with Tether's stablecoin $USDT. However, Bitfinex plans to introduce Bitcoin ($BTC) as a payment option in the future.

After the subscription period, the token will become available for secondary market trading on Bitfinex Securities, offering instant settlement, withdrawals to approved wallets, and over-the-counter trading.

Bitfinex Securities in El Salvador

In April 2023, Bitfinex obtained the first digital asset service provider license in El Salvador, allowing tokenized stocks and financial securities to be issued and traded. Bitfinex Securities El Salvador S.A. de C.V. officially began operations in January 2024.

The company anticipates strong demand for regulated digital asset investment vehicles, particularly after the approval of $BTC ETFs in the US.

However, not all of Bitfinex's initiatives in El Salvador have been successful. In May 2024, the company launched a public offering to fund the construction of a Hampton by Hilton hotel near El Salvador's International Airport, aiming to raise $6.25M.

The offering used the Airport Hotel SV ($HILSV) token to attract investors interested in the project. Despite Bitfinex's efforts, the offering failed to reach the required minimum of $500K, raising only $342K by the June 2024 deadline. Consequently, Bitfinex Securities issued a full refund to all investors.

Merging Traditional Finance and Blockchain

Bitfinex Securities' launch of tokenized US Treasury Bills is a significant step toward merging traditional finance with blockchain technology.

Despite previous setbacks, such as the $HILSV token offering, the company's approach to RWA tokenization shows its commitment to innovation.

This offering could potentially pave the way for broader acceptance of blockchain-based financial instruments globally.

References

• Bitfinex Securities El Salvador Granted El Salvador's First-Ever Digital Assets License (Bitfinex)
• Bitfinex Securities Launches in El Salvador, Offering New Opportunities in Digital Asset Services (Bitfinex)
• Treasury Bills (Treasury Direct)

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