Bitfinex Securities launches tokenized US Treasury Bills in El Salvador

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As a seasoned crypto investor with over a decade of experience navigating the dynamic world of digital assets, this latest development from Bitfinex Securities truly piques my interest. The tokenization of U.S. Treasury Bills, a move endorsed by El Salvador’s progressive regulatory environment, is an intriguing blend of traditional finance and cutting-edge blockchain technology.

Under El Salvador’s newly established securities structure, Bitfinex Securities is pioneering the initial public offering of tokenized U.S. Treasury Bonds, marking a regulated and groundbreaking step.

Through this offering, investors can buy digital tokens tied to temporary U.S. Treasury Bonds, merging conventional financial tools with the power of blockchain technology as suggested in a recent press statement disclosed to crypto.news.

NexBridge Digital Financial Solutions will be the entity that distributes the token, which symbolizes shares in the iShares US Treasury Bond 0-1yr UCITS ETF. This investment fund follows the performance of U.S. Treasury Bonds maturing within a year, offering a secure investment opportunity tied to one of the most reliable financial assets globally: U.S. government debt.

The subscription period for this token starts on November 19, 2024, and ends on November 29. The goal is to raise at least $30 million during this time. Investors can join in by using Tether (USDT), a well-known digital currency tied to the value of the US dollar, with Bitcoin (BTC) payments as an additional option becoming available later.

Following the end of the subscription phase, the token can be traded on Bitfinex’s Securities secondary market using the ticker symbol USTBL, and its value will be denominated in USDt (Tether dollars).

This innovation provides a novel method for investors to tap into Treasury Bills without the conventional hassle of working through banks or brokers, which can exclude smaller investors or those in under-served regions. Tokenization leverages blockchain technology to transform financial assets such as Treasury Bills into tradable digital tokens, making it simpler and more accessible for global trading.

El Salvador’s embrace of crypto

The regulatory climate in El Salvador has fostered this innovative development. Starting from January 2023, they enacted a novel securities law, which awarded Bitfinex Securities the inaugural Digital Asset License.

A variety of digital assets and stable coins have been introduced within this framework, demonstrating El Salvador’s commitment to incorporating blockchain technology into its financial infrastructure.

Starting from March 16, it’s said that El Salvador’s government cold wallet has been acquiring a Bitcoin each day. According to blockchain data, this wallet now contains approximately 5,851 Bitcoins, which is worth around $356.4 million. The average price paid for each coin was roughly $44,835. This buying pattern seems to support President Nayib Bukele’s promise of purchasing one Bitcoin daily, with the aim of filling El Salvador’s “Bitcoin savings account.

Through the use of blockchain technology, Bitfinex Securities plans to make U.S. Treasury Bills accessible to people and organizations globally, including those who were not able to participate in these markets before. This move is consistent with the broader shift towards integrating traditional financial systems with decentralized technologies.

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2024-11-19 19:34