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Tokenized debt raised with USDT
Bitfinex Securities announced on the 20th that it has issued tokenized bonds on Liquid Network, a layer 2 solution for the crypto asset (virtual currency) Bitcoin (BTC).
Luxembourg-based securitization fund ALTERNATIVE completed its fundraising with tokenized debt earlier this week. The stablecoin USDT has raised more than approximately 700 million yen ($5 million).
Alternative is a fund managed by microfinance giant Mikro Kapital. Mikro Kapital has a track record of providing loans totaling more than €1 billion to 300,000 borrowers in 14 countries.
Liquid Network was launched in 2018 as the first Bitcoin sidechain. It has the ability to tokenize fiat currencies, securities, digital reward points, and other common asset classes.
It also enables token issuers to meet regulatory obligations and allows investors to self-custody, withdraw, and trade peer-to-peer securities.
connection: Bitcoin’s first sidechain “Liquid Network” launches | 23 major exchanges including Bitbank and Bitfinex participate
This move is part of the real-world asset (RWA) tokenization initiative currently underway by various financial companies and governments.
It has just been reported that around 30 companies in Japan, including Mitsubishi UFJ Trust and Banking, will work on digital securitization of venture capital (VC) funds.
connection:Japanese government also participates Approximately 30 private companies including Progmat and SBI Securities are converting VC funds into digital securitization
What is RWA?
Abbreviation for “Real World Asset.” RWA that is tokenized on the blockchain includes real assets such as real estate, artwork, trading cards, and securities such as stocks and bonds.
Virtual currency glossary
connection:Why investors are interested in real asset tokenization and what is Real World Assets (RWA)?
Responding to the needs of small-scale entrepreneurs
Paolo Ardoino, CEO of Tether, which issues USDT, and chief technology officer of Bitfinex Securities, explained the significance of this initiative as follows.
This proof of concept is more than just a raise, it is an important step forward in bringing USDT to the microfinance industry.
Our ongoing challenge is to spread the word about the benefits of the nexus between securities and tokenization, and to bridge the gap that exists between traditional and crypto investors.
“Tokenization will allow us to respond efficiently and quickly to the needs of small entrepreneurs,” said Vincenzo Torani, president and founder of Mikro Kapital.
In recent years, various Bitcoin L2 projects have been launched. Most recently, blockchain technology company Elastos announced BeL2, which enables the development and management of smart contracts using Bitcoin. It also unveiled a plan to enable staking.
connection: Elastos launches Bitcoin L2 “BeL2” and plans to enable staking
Another project that has emerged is Ordinals, which enables the issuance of NFTs (non-fungible tokens) on the Bitcoin blockchain.
connection: What is the current status of Bitcoin Ordinal and its competitors, which continue to attract investor interest, and the BTC ecosystem?
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