As a seasoned analyst with over two decades of experience in traditional finance and digital assets, I find this latest development by Bitfinex Securities quite intriguing. The tokenized US Treasury bills offering under El Salvador’s legal framework presents an innovative approach to capitalizing on the benefits of blockchain technology while maintaining the stability of government bonds.
As a researcher, I’m excited to share that Bitfinex Securities, the digital securities exchange sibling of Tether, the stablecoin issuer, is launching a tokenized initial public offering for US Treasury bills (T-bills) under El Salvador’s legal framework. This innovative move marks another step forward in the integration of blockchain technology with traditional financial systems.
In my role as a researcher, I’m excited to share that NexBridge Digital Financial Solutions, based in El Salvador, will introduce a new token under the ticker USTBL. This token is designed to offer investors an opportunity to invest indirectly in short-term U.S. Treasury bills, denominated in USD. Essentially, it serves as a US dollar-backed digital asset that mirrors the returns of these financial instruments.
Bitfinex Securities is planning to gather at least $30 million through their first offering, which will be used for token issuance. The subscription period for this offer begins on November 19 and concludes on November 29.
Tokenized US Treasury exposure built on Bitcoin
As an analyst, I can share that the recent sale, as per Bitfinex Securities, marks the first regulated offering of tokenized U.S. Treasury exposure constructed utilizing Bitcoin (BTC) technology. In simpler terms, this means that a regulated entity has sold a product (tokenized U.S. Treasury exposure) which is built on the underlying technology of Bitcoin.
On the Liquid Network, a significant Bitcoin secondary platform, a fresh token has been introduced, which is projected to generate an annual return of approximately 5.02%.
The issuance proceeds will be allocated to the iShares $ Treasury Bond 0-1yr UCITS ETF, a publicly listed ETF, which seeks to track the investment results of an index composed of US dollar-denominated government bonds issued by the US Treasury.
Investors can buy the token with Tether’s USDt stablecoin
As per the statement, you can initially invest in tokens using Tether’s USDT (a stablecoin pegged to the US dollar), with the option to invest in Bitcoin becoming available at a later stage.
Once the initial subscription period concludes, the token can be traded on Bitfinex Securities’ secondary market using the ticker symbol USTBL. Trades will be conducted in USDt (US Dollar Tether).
Besides offering returns through maturity, this newly introduced token is anticipated to deliver advantages such as immediate transaction processing, transfers to authorized wallets, and over-the-counter (OTC) transactions, as stated by a representative from Bitfinex Securities to CryptoMoon.
The sale isn’t available to North American investors
In simpler terms, the introduction of this new service is made possible by the quick acceptance and establishment of digital asset regulations in El Salvador. Following El Salvador’s enactment of its Digital Assets Securities Law in January 2023, Bitfinex Securities received a local license in April 2023.
In simple terms, El Salvador’s regulatory system permits businesses to convert assets like funds, debts, stocks, and real estate into digital tokens. This makes it easier for companies to seek funding by issuing these tokens, investing in ventures, financing projects, and giving returns to investors.
The Bitfinex Securities representative stated that the sale is open to most investors, except for individuals residing in North America and countries under sanctions.
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2024-11-19 17:27