Bitfinex Launches Tokenized US T-Bills in El Salvador

To issue the token, which will be traded under the ticker USTBL, Bitfinex Securities‘ initial offering aims to raise at least $30 million.

By El Salvadorian law, Bitfinex Securities, a digital securities exchange and sister company of stablecoin issuer Tether, is launching a tokenized public offering of tokenized US Treasury bills (T-bills).

NexBridge Digital Financial Solutions, a digital asset issuer headquartered in El Salvador, will launch a new token as part of the sale. It will be traded under the ticker USTBL. The token’s purpose is to expose investors to short-term US T-bills valued in US dollars.

Bitfinex Securities‘ initial offering, which will begin on November 19 and run through November 29, aims to raise at least $30 million to move forward with the token issuance.

Bitcoin-based tokenized exposure to the US Treasury

The sale is the “first regulated offering” of tokenized US Treasury exposure based on Bitcoin BTC$91,383 technology, according to Bitfinex Securities.

The new token, which is being issued on the Liquid Network, a significant layer-2 (L2) solution for Bitcoin, is anticipated to yield 5.02% annually until it matures.

The issuance proceeds will fund the publicly traded iShares $ Treasury Bond 0-1yr UCITS ETF, which aims to replicate the investment performance of an index of US Treasury government bonds denominated in US dollars.

Using Tether’s USDt stablecoin, investors can purchase the token on Bitfinex.

The statement states that Tether’s USDt USDT$1.00 stablecoin will be used to first offer token investments, with Bitcoin becoming an option later.

The token will be traded on Bitfinex Securities’ secondary market under the ticker USTBL, trading in USDt, when the first subscription period ends.

A representative for Bitfinex Securities told Cointelegraph that the new coin is anticipated to offer advantages like rapid settlement, withdrawals to allowed wallets, and over-the-counter (OTC) trading in addition to yields to maturity.

Investors in North America are not eligible for the transaction.

El Salvador’s quick implementation of digital asset laws makes the new service possible. Bitfinex Securities obtained a local license in April 2023 following El Salvador’s passage of the Digital Assets Securities Law in January 2023.

Companies can tokenize funds, debt, stock, and real estate under El Salvador’s licensing framework, which makes it easier for them to raise money to issue tokens, finance projects, and investments, and provide investors with a return.

A representative for Bitfinex Securities stated that all qualified investors, except those in sanctioned nations and North America, can participate in the sale.