- Bitfinex Securities launches tokenized public offering in El Salvador, aiming to raise $30 million with new USTBL token.
- USTBL token provides investment in U.S. Treasury securities, offering a 5.02% annual return via the Bitcoin Liquid Network.
Bitfinex Securities has initiated a tokenized public offering aimed at collecting $30 million by the end of November for the release of USTBL, a new token. This token offers investors a way to gain exposure to U.S. Treasury bills, promising a 5.02% annual return.
According to Bitfinex, this is “the first regulated offering of US Treasury tokenized exposure built on Bitcoin technology.”
The token will be issued on Bitcoin’s second-layer solution, the Liquid Network, which ensures benefits such as instant settlement and withdrawals to approved wallets. This is Bitfinex’s first venture into providing regulated, tokenized exposure to U.S.
Treasury securities, enabled by El Salvador’s supportive regulatory environment for cryptocurrencies. Since 2021, Bitcoin has been recognized as legal tender in the nation, complemented by the Digital Asset Securities Law enacted in 2023.
Bitfinex Securities has been authorized as an asset issuer in El Salvador since April 2023. The funds raised from the USTBL token will be invested in the iShares $ Treasury Bond 0-1yr UCITS ETF, managed by BlackRock, which follows an index composed of short-term U.S. Treasury bonds. Initially, the USTBL token can be purchased using the USDT stablecoin, with provisions to accept Bitcoin in future transactions.
After the initial subscription period, the USTBL token will be listed for trading on Bitfinex Securities’ secondary market. This follows their earlier issuance of a debt token in April, intended to fund the construction of the Hampton by Hilton hotel near El Salvador’s international airport. The earlier token, HILSV, also operates on the Bitcoin Liquid Network and is traded in U.S. dollars and USDT.
However, the HILSV offering did not meet its financial target, raising just over $300,000 against a minimum required capital of $500,000. As a result, investors were offered the option to retrieve their funds.
Looking ahead, investors are anticipating the launch of volcano bonds backed by Bitcoin, which were initially slated for release in the first quarter of 2024. These bonds are expected to further El Salvador’s commitment to integrating blockchain technology into its economic development plans.
