Bitfinex Securities has issued new tokenized bonds to provide support for microfinance initiatives

This most recent product capitalizes on prior successes to provide assistance to entrepreneurs and small businesses in emerging markets.

Bitfinex Securities has announced the introduction of two new tokenized bond issues as part of an ongoing issuance program from Mikro Kapital’s securitization fund, ALTERNATIVE. This represents the second tokenized bond that the companies have issued since the Memorandum of Understanding was announced in October of last year.

Found in 2008, Mikro Kapital is a Luxembourg-based microfinance and impact investment enterprise. The company’s primary objective is to offer microcredit and financial services to small and medium-sized enterprises (SMEs) in emergent markets, with a particular emphasis on central Asia and Europe.

The bond program will include bonds with coupon rates of 10% and 13.5% for 11 and 36 months, respectively. The bonds, which are issued on the Liquid Network, are designed to raise between 500,000 and 10,000,000 USDt, with a minimal investment of 125,000 USDt.

These bonds are a component of a monthly issuance program that has the potential to expand in the future to include a variety of coupon rates and durations.

Jesse Knutson, Head of Operations at Bitfinex Securities, underscored the collaboration’s significance in the integration of traditional and crypto investments, with the objective of developing innovative financial solutions for the microfinancing sector. In accordance with Knutson,

“We are introducing innovative financial solutions that combine the benefits of traditional and crypto investments by utilizing the Liquid Network. We are delighted to maintain our ongoing partnership with Mikro Kapital and assist them in the introduction of novel financing methods to the microfinancing sector through this most recent tokenized bond issuance.”

Blockstream has devised the Liquid Network, a Bitcoin layer-2 solution. Designed to improve the functionality of the Bitcoin blockchain by facilitating the issuance of digital assets and quicker, more confidential transactions. It maintains a 1:1 parity with Bitcoin through a mechanism known as peg-in and peg-out, operating as a sidechain with Bitcoin.

Liquidity facilitates the issuance of assets, such as regulated security token offerings. This network enables investors to self-custody, withdraw, and trade securities peer-to-peer, while also enabling issuers to enforce transfer restrictions and create allowlists, thereby ensuring regulatory compliance.

The proceeds from this issue will be allocated to microfinance and sharing economy initiatives, which will assist entrepreneurs and small businesses in emergent markets. ALTERNATIVE, Mikro Kapital’s securitization fund, presently provides support to 180,000 end-borrowers in ten countries, with a loan collateral of approximately €300 million. It is important to note that approximately 35% of the beneficiaries are female entrepreneurs who reside in rural and local communities.

In October 2023, Mikro Kapital closed its inaugural tokenized bond, which raised more than $5.2 million USDt and was the first of its kind in the microcredit market. This most recent product expands upon that success by focusing on the continued support of entrepreneurs and small businesses in emerging markets. The capital raise for these new bonds will commence on July 3 and conclude on July 31.

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