Bitfinex Securities, in collaboration with NexBridge, has introduced USTBL, the first-ever regulated tokenized US Treasury bill offering under El Salvador’s cutting-edge digital asset laws. The initial subscription, open from November 19 to November 29, seeks to raise at least $30 million, offering investors exposure to short-term US T-bills with an anticipated annual yield of 5.0%. This innovative move further integrates blockchain technology into traditional finance, leveraging El Salvador’s progressive regulations.
Bitfinex Securities Launches Tokenized US Treasury Bills in El Salvador
Bitfinex Securities, a sibling company of Tether, is issuing tokenized US Treasury bills, or T-bills, under the legal framework of El Salvador. In collaboration with NexBridge Digital Financial Solutions, the new offering brings a new token called USTBL exposure to investors for short-term dollar-denominated T-bills.
The token, dubbed USTBL, would offer exposure to short-term US T-bills and trade in US dollars. The offer, set to raise at least $30 million, will be open for subscription from November 19 to November 29, 2024.
The company came under the lights recently when Heather Morgan, famously known as “Razzlekhan,” was sentenced to 18 months in prison for laundering funds from the 2016 hack, a case that underscores the company’s significant role in the cryptocurrency space.
Partnering Tether, Famous For Its USDt Stablecoin
Bitfinex Securities and its sister company Tether, renowned for the USDt stablecoin, are revolutionizing traditional finance with the launch of a tokenized US Treasury bill offering under El Salvador’s progressive digital asset framework. The new token, USTBL, issued by NexBridge Digital Financial Solutions, offers investors exposure to short-term US. T-bills with an anticipated 5.02% annual yield.
The milestone underscored Tether’s significant investment in U.S. Treasury bills, valued at $102.5 billion in Q3 2024. It marked a major step forward in blending digital assets with traditional financial instruments.
The offering sees a new token, dubbed USTBL, issued by El Salvador-based digital asset issuer NexBridge Digital Financial Solutions. USTBL gives investors exposure to short-term US T-bills denominated in US dollars. The token is anticipated to yield 5.02% per annum to maturity and is issued on the Liquid Network, a Bitcoin layer-2 solution.
Furthermore, the initial subscription period runs from November 19 to November 29, 2024, with a $30 million minimum target. Investors can purchase the token using USDt, Tether’s stablecoin, with Bitcoin support coming later. After the subscription period, USTBL will trade on the company’s secondary market under the ticker USTBL.
Enabling Tether to Launch Tokenized US Treasury Bills
Tether is overall famous for its USDt stablecoin and invests immensely in US Treasury bills. In the third quarter of 2024, Tether reported holding $102.5 billion in US Treasury bills- a proxy of its increased involvement in traditional finance instruments.
This is, therefore, a tokenized T-bill offering made possible by El Salvador’s Digital Assets Securities Law, enacted in January 2023. Bitfinex Securities was issued a local license in April 2023, permitting the company to tokenize multiple assets such as funds, debt, equity, and real estate. The sale will be made available to qualified investors, excluding those from North America and sanctioned countries.
Also, let’s mention that Tether’s technology played a pivotal role in enabling Quantoz to launch its MiCAR-compliant stablecoins, EURQ and USDQ.
The launch of these stablecoins pegged to the Euro and US Dollar, aims to improve financial transactions in Europe. Quantoz is supported by Tether’s Hadron platform and backed by Kraken and Fabric Ventures. This positions Quantoz to lead the European stablecoin market, showcasing Tether’s growing influence in stablecoins and blockchain.
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