With the aim of offering investors exposure to US Treasury bills, Bitfinex Securities, an exchange linked to Tether, launched a tokenized public offering in El Salvador on November 19.
The idea is that digital asset issuer NexBridge Digital Financial Solutions, based in the Central American country, will issue a new token that will be traded under the ticker USTBL. The initial offer, which will end on November 29, seeks raise a minimum of USD 30 million for the issuance of the token.
USTBL will be broadcast on the Liquid Networksecond layer solution Bitcoin/” target=”_blank” rel=”noreferrer noopener”>the Bitcoin networkand is expected to have a yield to maturity of 5.02% per year. This, in addition to other benefits including instant settlement, withdrawal of funds to whitelisted wallets, and over-the-counter (OTC) trading.
According to Bitfinex it is about of “the first regulated offering of tokenized US Treasury exposure built on Bitcoin technology.” It is made possible in El Salvador by virtue of the favorable regulations for cryptocurrencies that exist in the country.
In that sense, not only is the fact cited that in El Salvador, BTC has been legal tender since 2021, but there are also a series of regulations that facilitate the issuance of the tokenAmong them, the Digital Asset Securities Law stands out, enacted in 2023. Additionally, Bitfinex Securities obtained a local license as an asset issuer in April 2023.
The firm explains that the proceeds from the token issuance will go to the iShares $Treasury Bond 0-1yr UCITS ETFmanaged by the company BlackRock and which, in itself, is an exchange-traded fund that follows an index composed of state bonds denominated in dollars, issued by the Treasury Office. To invest in the new token you can use USDT stablecoin. Subsequently, can be used bitcoin.
At the close of the current subscription period, USTBL will be available for trading on the Bitfinex Securities secondary market.
This is the second issuance made by the company after last April it launched a debt token to raise the capital necessary to build and develop the Hampton by Hilton hotel complex, located near the international airport of the Salvadoran nation.
As reported by CriptoNoticias, the debt token (HILSV) grants access to an alternative form of microcredit to expand the country’s real estate market and its issue was qualified as the first tokenization of digital assets in El Salvador. Like USTBL, this token also circulates on the Bitcoin Liquid Network sidechain and is traded in US dollars and Tether’s USDT stablecoin.
However, the public offering of the HILSV token failed to meet initial expectationssince he raised a little more than $300,000, when the minimum capital required was half a million dollars. Because of this, investors have the right to ask for their money back.
Meanwhile, investors continue waiting for the issuance of the volcano bonds that will be backed by bitcoinwhich they had promised for the first quarter of 2024.
It is about a one-of-a-kind issuewith which he wants to “position El Salvador in the international market”, as the CEO of Tether and CTO of Bitfinex Securities, Paolo Ardoino, has expressed on several occasions.
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