Bitfinex Securities Launched First Tokenized U.S. Treasury Bonds

Key Points:

• Bitfinex Securities launches the first regulated tokenized U.S. Treasury bonds under El Salvador’s legal framework.
• The offering begins on November 19, 2024, and ends on November 29, with a target of raising at least $30 million.

Bitfinex Securities, a digital securities exchange, is set to offer the world’s first-ever regulated tokenized U.S. Treasury bonds under the legal framework of El Salvador. The offering represents an important milestone in bringing traditional finance closer to blockchain technology.

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First Tokenized U.S. Treasury Bonds

NexBridge Digital Financial Solutions, a digital asset issuer based in El Salvador, has issued the new token USTBL. It’s designed to give investors access to short-term U.S. Treasury bonds denominated in U.S. dollars, merging the stability of traditional bonds with the accessibility of tokenized assets.

The initial subscription of the tokens will start on November 19, 2024, and will remain open until November 29. At this stage, Bitfinex hopes to raise at least $30 million. Investors will be able to buy the tokens with the stablecoin of Tether, USDT, although the exchange intends to allow Bitcoin purchases in the future.

USTBL Tokens Backed by BlackRock ETF and Bitcoin Layer 2 Technology

USTBL is issued on the Liquid Network, a Bitcoin Layer 2 solution, and promises an annualized yield to maturity of 5.02%. Following the close of the subscription period, tokens will be freely traded on the secondary market provided by Bitfinex Securities under the ticker USTBL. Its value is secured by BlackRock’s iShares Treasury Bond 0-1yr UCITS ETF, thereby being closely pegged to conventional financial assets.

Bitfinex Securities describes the product as “the first regulated tokenization of U.S. treasury bonds using Bitcoin technology.” It underlines how more and more is the adoption of blockchain to create innovative financial instruments and, at the same time, provide global investors with access to trusted assets.

The initiative is expected to attract significant interest from investors seeking a blend of traditional asset reliability and the advantages of blockchain, such as enhanced transparency and accessibility.