Bitfinex Securities has introduced two new tokenized bonds to support microfinance projects in emerging markets. This initiative is part of an ongoing issuance program from Mikro Kapital’s securitization fund, ALTERNATIVE. It is the second tokenized bond issued since the collaboration between the two companies was announced in October last year.
Mikro Kapital, a microfinance and impact investment company based in Luxembourg, focuses on providing financial services to small and medium-sized enterprises in countries across Central Asia and Europe. The new bond program includes 11-month and 36-month bonds with coupon rates of 10% and 13.5%, respectively. These bonds, issued on the Liquid Network, aim to raise between 500,000 and 10,000,000 USDt with a minimum investment of 125,000 USDt.
The collaboration between Bitfinex Securities and Mikro Kapital aims to merge traditional and crypto investments to bring innovative financial solutions to the microfinance sector. By leveraging the Liquid Network, they are introducing new forms of financing to support small businesses and entrepreneurs in emerging markets.
The Liquid Network, developed by Blockstream, is a Bitcoin layer-2 solution that enables faster and more confidential transactions, as well as the issuance of digital assets. It operates as a sidechain to Bitcoin, maintaining a 1:1 peg with Bitcoin through peg-in and peg-out processes. This network allows for asset issuance, including regulated security token offerings, while ensuring regulatory compliance and enabling peer-to-peer trading.
The proceeds from these new tokenized bonds will be invested in microfinance and sharing economy projects to support small businesses and entrepreneurs in emerging markets. ALTERNATIVE, Mikro Kapital’s securitization fund, currently supports 180,000 end-borrowers across ten countries with a loan portfolio of approximately €300 million. Notably, 35% of the beneficiaries are women entrepreneurs in local and rural communities.
The debut tokenized bond issued by Mikro Kapital in October 2023 raised over $5.2 million USDt and was the first in the market for microcredit. This new offering aims to build on that success and further support small businesses and entrepreneurs in emerging markets.
The capital raise for these new tokenized bonds will begin on July 3 and conclude on July 31. This initiative demonstrates the ongoing commitment of Bitfinex Securities and Mikro Kapital to provide innovative financial solutions and support to the microfinance sector in emerging markets.