Bitfinex Securities, the El Salvadoran division of the global trading platform, has announced the launch of tokenized United States Treasury bills. The tokens will be issued by NexBridge Digital, a fellow digital asset provider based in El Salvador.
Bitfinex Securities, NexBridge launch first tokenized US Treasury Bill offering under El Salvador’s legal framework
— unfolded. (@cryptounfolded) November 19, 2024
The company claims this marks the first-ever issuance of tokenized securities under El Salvador’s newly established securities licensing framework.
The Tokenized Offering
The tokenized offering will allow investors to access short-term U.S. Treasury bills denominated in dollars. Bitfinex stated that proceeds from the issuance would be invested in the iShares $ Treasury Bond 0-1yr UCITS exchange-traded fund (ETF). The fund tracks the performance of USD-denominated Treasury bonds with maturities ranging from zero to one year.
The initial subscription period for the product runs from November 19 to 29, during which Bitfinex aims to raise a minimum of $30 million. Following this phase, the company plans to open additional subscription windows regularly. Investments will initially be accepted in Tether (USDT), with support for bitcoin (BTC) expected to follow.
Additionally, the token will be listed on Bitfinex Securities’ secondary market under the ticker symbol USTBL. It will be tradable in USDT, broadening access to U.S. Treasury bills for investors who previously lacked such opportunities.
Fostering Innovative Financial Solutions
The tokenized offering initiative reflects Bitfinex’s ambition to expand the tokenized securities sector in El Salvador. By combining the reliability of U.S. Treasury bills with the efficiency of blockchain technology, the platform aims to foster innovative financial solutions.
Jesse Knutson, Head of Operations at Bitfinex, highlighted the token’s potential to enhance portfolio diversification. He noted that USTBL offers investors a way to balance their exposure to digital assets with the stability of traditional finance, reducing overall risk.
“This issuance represents a significant step forward in financial technology by merging the security of government-backed securities with the adaptability and efficiency of digital assets,” Knutson remarked.
Similarly, Nicolas Cane, CEO of NexBridge, shared his enthusiasm for the project. He explained that their goal is to integrate traditional assets with blockchain technology, creating a transparent and efficient financial environment.
He added that Bitfinex Securities’ infrastructure and support were crucial in bringing this innovative product to market, reinforcing El Salvador’s reputation as a leader in digital financial advancements.
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