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Bitfinex’s Tether bond falls short in promised capital revolution

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Bitfinex’s Tether tokenized bond, named ALT2611, has only reached 15% of its $10 million target two weeks into the launch, not meeting the company’s investment and interest expectations.

In October, Bitfinex Securities, an RWA tokenization platform, announced its inaugural tokenized bond, ALT2611. The product went live on November 15.

The official website reveals that the ALT2611 Tokenized Bond, with a target of 100,000 ALT2611 worth $10 million USDT, has not achieved its goal during the two-week offer period. The offer period has been extended by another two weeks, with only 15% of the target achieved so far.

A 36-month bond with a 10% coupon, denominated in USDT and issued by Alternative, a securitization fund managed by Mikro Kapital in Luxembourg, is what the ALT2611 Tokenized Bond represents.

Tokenized bonds, leveraging blockchain technology, offer benefits like enhanced liquidity, accessibility, security, transparency, and around-the-clock trading, distinguishing them from traditional paper bonds.

The ALT2611 Tokenized Bond, with a minimum initial purchase size of 125,000 USDT and secondary market trading in denominations of 100 USDT, is not available to U.S. citizens or persons present in the United States.

Crypto trader Novacula Occami commented, “Bitfinex’s first USDT bond issue is a flop,” before adding, “Sorry Paolo, USDT ain’t going to dominate capital markets. BitFinex Securities Kazakhstan isn’t keeping investment bankers up at night.”

Paolo Ardoino, Tether’s chief technology officer, believes that USDT has the potential to play a significant role in the future of capital raises, becoming the underlying denomination asset of a new financial system.

Issued on the Liquid Network, a sidechain designed to speed up transactions and increase scalability for Bitcoin, is where the ALT2611 Tokenized Bond is based.

In April 2022, Bitfinex Securities secured a Digital Asset Service Provider license in El Salvador, a country expressing interest in exploring the issuance of Bitcoin bonds.

As of August, dollar bonds in El Salvador have shown solid returns, with a reported 70% return for 2023.

 

Read also: SBI Holdings partners with Circle for USDC circulation and web3 services

 

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