Bitfinex Securities and Mikro Kapital Announce Second Tokenized Bond Offering

On-chain real-world assets continue to gather momentum, with Bitfinex Securities and Mikro Kapital announcing the launch of two new tokenized bonds.

On July 1, Bitfinex Securities, the tokenized securities platform from the Bitfinex cryptocurrency exchange, announced it will host two new tokenized bonds. The bonds will be issued on July 3 by Alternative, the securitization fund of Mikro Kapital, a microfinance group that has previously partnered with Bitfinex.

The bonds will offer the equivalent of 10% annual returns over 11 months and 13.5% annually over 36 months, respectively. Bitfinex and Mikro Kapital will issue the bonds each month, targeting monthly raises of between $500,000 and $10 million. The minimum investment size is $125,000.

“This program provides an alternative investment opportunity with potentially higher returns compared to traditional fixed-income options,” Bitfinex Securities said. “These bonds will be issued monthly, aiming to raise significant funds for microfinance and sharing economy projects in emerging markets.”

The bonds will launch on the Liquid Network, a Bitcoin sidechain launched by Blockstream. Liquid allows asset issuers to enforce whitelists and transfer restrictions to ensure regulatory compliance.

Bonds on Bitfinex

The news marks the second tokenized bond issuance from Bitfinex Securities and Mikro Kapital.

In October 2023, the two companies signed a Memorandum of Understanding (MOU) to collaborate on exploring tokenizing, listing, and trading debt securities.

In December 2023, Mikro Kapital launched its first tokenized bond, ALT2612, via Bitfinex Securities. The bond offered a 10% annual return over 36 months and raised $5.2 million. Bitfinex described the issuance as a “proof-of-concept”

In April, Inversiones Laguardia, an El Salvador-based developer, also launched a bond on Bitfinex Securities to finance the construction of a Hampton by Hilton hotel at the El Salvador International Airport. The bond offered a 10% annual return over five years and sought to raise $6.25 million.

Tokenized bonds proliferate

Bitfinex isn’t alone in getting in on bond tokenization, with major firms and even governments from across the globe exploring on-chain bond issuance.

In February 2023, the Government of the Hong Kong Special Administrative Region (HKSAR) issued HK$800 million worth of tokenized green bonds. The move marked the world’s first government-issued tokenized green bond.

In June, Bitcoin Suisse, a crypto-focussed financial services provider, launched an investment-grade tokenized bond on Polygon. The USDC-settled bond was issued in partnership with Obligate, a platform enabling mainstream companies to issue blockchain-based bonds.

That same month, Misyon Bank, a Turkish investment bank, became the first financial institution offering corporate Eurobonds and Turkish sovereign bonds to retail investors. The products were issued via its newly launched real-world asset tokenization platform.

According to Rwa.xyz, the value of tokenized U.S. treasuries, bonds, and cash equivalents has ballooned in 2024, with the sector boasting a $1.77 billion market cap after growing more than 120% since the start of the year.