Bitfinex Securities raised $30 million through the issuance of the USTBL token representing short-term US Treasury bills, leveraging the digital asset legal framework of El Salvador.
On November 19, Bitfinex Securities, a digital securities exchange affiliated with Tether, announced the public offering of tokenized US Treasury bills, leveraging the advanced digital asset legal framework of El Salvador. This offering marks a significant step in integrating traditional finance with blockchain technology, opening up new investment opportunities for the global market.
The event is facilitated through the issuance of a new token called USTBL by NexBridge Digital Financial Solutions, a digital asset issuer headquartered in El Salvador. The USTBL token is designed to represent short-term US Treasury bills denominated in USD, offering an expected annual yield of 5.02% until maturity.
The initial offering, with a minimum target of $30 million, will run from November 19 to November 29, 2023. According to Bitfinex Securities, this is the first managed offering related to accessing tokenized US Treasury bills on the Bitcoin technology platform.
Leveraging the Advantages of Liquid Network and El Salvador's Legal Framework
Bitfinex Securities has chosen the Liquid Network, a Bitcoin second-layer solution, as the platform for issuing the USTBL token. The use of Liquid Network optimizes transaction speed and reduces costs, while maintaining the security of the Bitcoin network.
The entire capital raised will be invested in the iShares $ Treasury Bond 0-1yr UCITS ETF, a publicly listed ETF tracking the performance of short-term US government bonds. Initially, investors can purchase using Tether's USDT stablecoin, and additional options to use Bitcoin will be available. After the registration period, USTBL will be traded on the secondary market of Bitfinex Securities against USDT.
This offering is made possible by the favorable legal environment for digital assets in El Salvador. Since the enactment of the Digital Securities Law in January 2023, El Salvador has attracted numerous blockchain-related businesses. Bitfinex Securities was licensed to operate in El Salvador in April 2023, allowing the company to leverage this legal framework to issue the USTBL token.
The legal framework enables companies to tokenize various assets, from funds, debt, and equity to real estate, facilitating capital raising, project financing, and generating returns for investors.
In addition to the yield until maturity, USTBL offers other benefits such as instant settlement, withdrawal to approved wallets, and over-the-counter (OTC) trading. The offering is open to all eligible investors, excluding those from North America and sanctioned countries.
